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Vietnam Posts Record High Trade Deficit in May as US Sanctions Loom

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Vietnam Posts Record High Trade Deficit in May as US Sanctions Loom

Vietnam's trade deficit widened in May to a record high as imports surged 34% amid the ongoing conflict in the Middle East and possible tariffs from the U.S.

The Southeast Asian country's trade deficit reached $5.21 billion in May, wider than the $3.28 billion recorded in the previous month, the National Statistics Office said Wednesday.

The figure was the largest trade deficit since the beginning of records in 1990, and was worse than Trading Economics' forecast of a $3.41 billion deficit and Bloomberg economists' $3.98 billion deficit forecast.

The domestic sector logged a trade deficit of $20.76 billion in the first five months, while the foreign investment sector, including crude oil, logged a $6.96 billion surplus.

Imports surged to $52.14 billion during the month, higher than the $49.48 billion seen in the previous month.

For the first five months of 2026, imports surged 31% to $229.46 billion, led by purchases from China with $92.6 billion, the NSO said.

Exports grew 18% year over year to $46.93 billion but were slower than Bloomberg's growth forecast of 19.7%.

For the January-May period, exports jumped 19.5% to $215.66 billion, with the U.S. as Vietnam's largest market at $69.6 billion.

The data comes as the U.S. Trade Representative's office introduced a third probe into Vietnam's intellectual property protection and enforcement and its impact on American commerce.

Trade Representative Jamieson Greer is looking to consult President Donald Trump for any "responsive action" regarding Vietnam, the office said May 29.

The conflict in the Middle East could also cost Vietnam's export-driven economy as crude oil prices rise, Bloomberg reported separately Wednesday.

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