Vietnam will maintain its 10% economic growth target for 2026 despite a widening trade deficit and rising inflationary pressures, according to a senior finance official.
Deputy Finance Minister Nguyen Duc Chi said the country’s trade deficit is estimated to have reached US$15 billion in the first half of the year, reversing a surplus of US$7.6 billion recorded in the same period last year.
He said the deficit was largely driven by higher fuel import prices following the ongoing war in the Middle East.
“However, I believe that export growth will accelerate during the rest of this year, narrowing the trade deficit for the entire year,” he said during a press briefing in Hanoi.
Vietnam’s economy has also faced rising inflation pressures, with the annual inflation rate reaching 5.6% in May, above the government’s full-year target of 4.5%.
The export-driven economy has also come under scrutiny from the United States over concerns related to trade practices, including excess capacity, intellectual property issues and goods linked to forced labour.
Earlier this month, Washington proposed tariffs of up to 12.5% on imports from 60 countries, including Vietnam, after identifying concerns over forced labour-linked supply chains.
Vietnam has said the assessment does not fully reflect its efforts to address the issues.
Reuters
