HANOI: Vietnam’s trade deficit has widened to a record high as imports surge on rising global raw material prices, while exporters brace for potential new US tariffs.
The deficit in May rose to US$5.21bil, according to data released by the National Statistics Office Wednesday.
That was well above the median estimate in a Bloomberg survey for a US$3.98bil shortfall, as well as the revised US$3.99bil deficit reported for April.
Vietnam’s exports jumped 18% last month, slower than economists’ forecast of 19.7% growth. Imports were higher than expected at 33.8%.
The widening shortfall “was driven largely by higher import costs for energy and semiconductor components, as concerns over global chip shortages and rising prices prompted companies to increase purchases and build up inventories”, according to Pham Vu Thang Long, chief economist at Ho Chi Minh City Securities.
The war in the Middle East has also pushed up crude oil and other input costs.
The country also faces trade uncertainty after the United States proposed tariffs on imports from major trading partners due to forced-labour practices. — Bloomberg
