Vietnam trade deficit widens to $3.6bn in July as fuel costs bite

Vietnam’s trade balance deteriorated sharply in July, with the deficit expanding to $3.587 billion from $2.64 billion in June.

The widening gap was primarily driven by higher costs for fuel imports, which increased the value of goods entering the country despite steady export performance.

Channel NewsAsia reported the figures, highlighting the pressure on the current account as global energy prices remain elevated.

Channel NewsAsia reported the figures, highlighting the pressure on the current account as global energy prices remain elevated.

On the inflation front, consumer prices rose 4.45% year-on-year in July, a modest deceleration from the 4.69% increase recorded in June.

The slight cooling in price pressures offers some relief to policymakers, though the persistent inflation rate remains a key focus for the State Bank of Vietnam as it navigates monetary policy decisions.

The trade data adds another layer of complexity to Vietnam’s economic outlook.