Vietnam Records US$16.65 Billion Trade Deficit in First Half

Vietnam recorded a trade deficit of US$16.65 billion in the first half of 2026. This occurred as imports outpaced export growth, despite total trade turnover reaching US$549.69 billion, up 27.1% year-on-year. Trade with China saw a significant increase, reaching 305.6 billion CNY, a 28.3% year-on-year rise. This represented 83.9% of the total trade turnover through the border gate, highlighting the strong economic ties and potential trade imbalances. In other sectors, Vietnam ranked fifth globally, second in Asia, and first in Southeast Asia in wood and wood product exports, laying a foundation for modern, sustainable development and higher added value. Rice exports also showed robust growth in June, with a 47.9% increase in volume and a 37.3% increase in value compared to the same period last year. Economically, Vietnam is leveraging its competitive advantages in IT outsourcing, with a young workforce of software engineers and competitive labor costs attracting international companies like FPT Software and VNG. This sector demands modest infrastructure spending while effectively utilizing human capital. Vietnam is also actively pursuing international trade agreements, aiming to sign a Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) member states at an early date, which could expand market access in Europe. Domestically, public investment disbursement reached over 356 trillion VND (US$13.52 billion), equivalent to 35.5% of the Prime Minister's plan. This indicates progress in infrastructure development as part of economic stimulus efforts. Furthermore, a national plan aims to develop at least 10 large strategic technology enterprises by 2030, each generating annual revenue of at least US$1 billion, signaling Vietnam's commitment to accelerating its digital economy transition. Vietnam will continue working closely with the European Free Trade Association (EFTA) member states to sign their free trade agreement (FTA) at an early date and effectively implement its commitments. The country ranked fifth globally, second in Asia and first in Southeast Asia in wood and wood product exports, providing an important foundation for the industry to pursue modern, sustainable development and generate higher added value. Vietnam highly appreciates the valuable support of the German Government through KfW. Germany, through the German Reconstruction Bank (KfW), is one of Vietnam's largest bilateral donors. The country exported 769,000 tonnes of rice in June, earning 376 million USD, a sharp increase of 47.9% in volume and 37.3% in value compared with the same period last year. In the first six months of the year, the disbursement of public investment capital nationwide reached over 356 trillion VND (13.52 billion USD), equivalent to 35.5% of the plan assigned by the Prime Minister. Compared to the same period in 2025, the rate reached a similar level, but the volume of disbursed capital rose by 38.4 trillion VND, thanks to the highest ever increase recorded in the total planned public investment capital for 2026 (1.01 quadrillion VND). During the 2026-2030 period, Vietnam will work to complete a specialised legal and institutional framework, as well as governance, management and supervision mechanisms for the IFC in line with international standards, ensuring transparency, safety and efficiency. Under the national plan for 2026–2030, Vietnam aims to develop at least 10 large strategic technology enterprises by 2030, each generating annual revenue of at least 1 billion USD, employing over 5,000 workers, operating a recognised science and technology organisation, and spending at least 3% of annual revenue on research and development. With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,547 VND/USD, and the floor rate 24,019 VND/USD. Argentina's Cordillera Brewing is seeking Vietnamese suppliers of products such as cashew nuts, black pepper, cinnamon, star anise, spices, natural rubber, rattan and bamboo products, handicrafts, and a range of processed food products. A young army of software engineers, competitive labour costs and deep mathematical skills have already made Vietnam a magnet for IT outsourcing. Companies like FPT Software and VNG have proved they can compete in international markets. These sectors demand relatively modest infrastructure spending while putting existing human capital to work. Experts say verified coffee-growing data is key to helping Vietnamese exporters meet sustainability requirements, secure market access and increase export value. The Vietnamese Embassy in Japan reaffirmed its commitment to serving as a trusted bridge connecting Gunma with Vietnamese ministries, localities, universities and businesses to promote concrete cooperation in investment, trade, science and technology, innovation, digital transformation and human resources development. During the recent 68th series of meetings of the assemblies of the member states of the World Intellectual Property Organisation (WIPO), Minister of Science and Technology Vu Hai Quan praised WIPO’s role in developing the global IP system, particularly in strengthening state management capacity, supporting businesses, training human resources, and promoting the commercialisation of intellectual assets. Luke J. Lindberg, USDA Under Secretary for Trade and Foreign Agricultural Affairs, said the mission will build on the rapid response TRUMP mission that wrapped up in March, and lock in wins for US farmers and agricultural producers in Vietnam. Hai Phong continues to identify industry, logistics and port services as the pillars of its economy while steering industrial development towards high technology, green production and sustainability. Launched in mid-June, VETC’s charging service is integrated into its existing electronic toll collection app. Drivers can now find charging stations, navigate to them, start charging, pay and receive electronic invoices all on a single platform. The Da Nang Hi-Tech Park and Industrial Zones Authority has now finalised all administrative procedures under its jurisdiction in accordance with the FTZ’s special mechanisms and policies, leaving the system ready for deployment once the zone’s functional areas officially begin operations. Durian remains the sector’s biggest growth driver, accounting for an estimated 35-40% of total fruit and vegetable export revenue so far this year and as much as 55-60% in July. Branded residences are playing an increasingly prominent role in Vietnam’s premium property market, according to Savills Hotels. From 00:00 on July 21 to 23:00 on July 23 (Vietnam time), passengers can book Eco tickets from 0 VND on direct flights between Vietnam and Sri Lanka at www.vietjetair.com and the Vietjet Air app. The growing number of international retailers and importers choosing Ho Chi Minh City as a sourcing destination underscores the city's transformation from a trade promotion venue into a regional procurement hub. Copyright, VietnamPlus, Vietnam News Agency (VNA) Editor-in-chief, Mr. Tran Tien Duan.