HANOI: Vietnam's annual inflation in August accelerated from July, while the country's trade deficit narrowed, government data showed on Thursday (Sept 3).
August annual inflation came in at 4.89%, accelerating from 4.45% in July, led by increases in the prices of transportation, housing and food and food services, the National Statistics Office said in a report.
Exports in August rose 26% from a year earlier to US$54.80 billion, while imports increased 37.9% to $54.91 billion, resulting in a trade deficit of $110 million, the NSO said.
For the first eight months of the year, exports increased 22.4% to $374.84 billion, while imports rose 35.3% to $395.30 billion, translating into a trade deficit of $20.46 billion, a record high.
Vietnam is targeting economic growth of more than 10% this year as it seeks to consolidate its position as a regional manufacturing hub, but policymakers are weighing that ambition against rising imports, inflation risks and an increasingly uncertain trade environment.
The trade outlook has come under greater scrutiny since the United States imposed a 12.5% tariff on Vietnamese goods last month, with Washington saying that Vietnam had not effectively prevented exports made with forced labour, an accusation Hanoi has rejected.
Despite external risks, domestic activity has remained resilient.
Industrial production in August increased 14.4% from a year earlier, compared with July's 14.5% growth, while retail sales rose 14.9%, compared with 14.5% in July.
Foreign direct investment inflows in the January-August period reached $17.3 billion, compared with $15.2 billion in the first seven months and up 12% from a year earlier. - Reuters
