According to the Customs Department, the sharp increase in imports of electronics, crude oil and production machinery has been the primary factor behind the reversal in the country's trade balance.

The latest figures released by the Customs Department under the Ministry of Finance show that from the beginning of the year to June 7, Vietnam's imports exceeded exports by around USD15.36 billion. The result contrasts with the trend seen in recent years, when the economy consistently posted significant trade surpluses.

Speaking at a media briefing on June 9, Ngo Nhu An, Deputy Head of the Information Technology and Customs Statistics Division at the Customs Department, said the trade deficit reached USD13.81 billion during the first five months of the year. However, in less than 10 days of June, the figure increased by more than USD1.5 billion.

According to An, a sharp rise in imports across three key categories - computers and electronic products, crude oil, and machinery and equipment used in manufacturing - was the main reason for the widening deficit.

Computers, electronic products and components accounted for the largest imbalance. In May alone, the category recorded a trade deficit of nearly USD8 billion. During the first five months of the year, the deficit for the sector reached USD32 billion, up 80.5 percent from the same period last year.

With import turnover reaching USD88.2 billion, electronic products now account for 38.4 percent of Vietnam’s total import value, making them the single largest source of pressure on the country’s trade balance.

Geopolitical tensions and ongoing conflicts in the Middle East have also pushed crude oil prices higher, increasing the value of imports.

Although the volume of crude oil imports declined by 18.2 percent compared with the same period last year, the average import price rose from USD570.2 per tonne to USD725.7 per tonne. As a result, the total import value still increased by 4.1 percent.

The rise was even more pronounced in refined petroleum products. Import volumes increased by 15.8 percent, while import turnover surged by 81.6 percent, reaching nearly USD4.9 billion by the end of May.

Another important factor has been growing demand for machinery, equipment and automotive components used in manufacturing.

During the first five months of the year, imports of machinery and equipment totaled USD27.8 billion, while imports of automobile parts and components exceeded USD3.1 billion.

According to customs authorities, many businesses have proactively increased imports and built up inventories of equipment and production inputs to ensure uninterrupted operations and fulfill previously signed orders.

Despite the current trade deficit, An said pressure on the trade balance appears to be easing.

Vietnam recorded a trade surplus of around USD500 million during the second half of May, while the trade deficit in the opening days of June was significantly lower than in earlier periods.

However, accurately forecasting the trade balance for the remainder of the year remains challenging due to unpredictable developments in global markets and ongoing armed conflicts around the world.

To support macroeconomic management, the Customs Department said it will continue closely monitoring import and export activity and will publish updated trade data every two weeks. The information will help authorities assess economic conditions and develop appropriate policy responses in a changing global environment.

Tien Dung