Vietnam’s trade balance slipped into the red in the first five months of 2026 as rising imports outpaced export growth.

According to Tuoi Tre News, the National Statistics Office (NSO) showed that the country recorded a trade deficit of $13.8bn between January and May, a sharp reversal from the $5.1bn surplus reported during the same period last year.

Speaking at a press briefing in Hanoi on June 16, NSO Deputy Director Le Trung Hieu said the domestic sector posted a deficit of $20.76bn, while foreign-invested enterprises generated a surplus of $6.96bn.

Hieu attributed the shift largely to two factors. The first was an estimated $8bn deficit in petroleum products, driven by elevated global crude oil prices. Vietnam remains reliant on imported crude to supply its refineries, leaving it exposed to fluctuations in international energy markets.

The second factor was a sharp increase in imports of semiconductors, electronic components and other high-value industrial inputs. Several foreign-invested projects in provinces including Phu Tho and Thai Nguyen have imported semiconductor chips worth billions of dollars ahead of commencing production.

Many of these projects are still under development and require substantial imports of machinery, equipment and raw materials before becoming operational. State-backed initiatives, such as the construction of a national data centre, are also expected to increase import demand.

Despite the widening deficit, Hieu argued that imports of capital equipment should be viewed as investments that support future economic expansion. Rising imports of components and raw materials also reflect stronger manufacturing activity and expectations of growing export demand.

NSO Director Nguyen Thi Huong acknowledged that a trade deficit can weigh on economic growth, but stressed that its impact depends on how imported goods are used.

She noted that while imports have traditionally supported export-oriented manufacturing, a growing share is now being used for products destined for the domestic market, including electric vehicles. Determining whether the deficit poses a longer-term concern will require a closer examination of import data and investment trends.