Vietnam has recorded a US$1 billion trade deficit in May, according to data from the General Office of Statistics–the GSO. This is the first time in years the country’s trade balance has been in deficit.
Of note, in S&P Global’s monthly Purchasing Managers Index updates over the last year or so, the fact that Vietnamese manufacturers were burning through inventory rather than importing more, has been reported every other month. This was in the context of lower demand for Vietnam’s exports, a reality that seems to be changing–exports were 15.8 percent higher than in May of last year–and in which case businesses need to scale back up and import more inputs.
In this context, this trade deficit doesn’t really look to be a problem.
See also: How to Start an Import Business in Vietnam: Ultimate Guide 2024