Vietnam's exports in May reached $46.93 billion, up 18% year-on-year. Of that total, the domestic economic sector contributed $9.05 billion, up only 3.5%, while the foreign-invested sector, including crude oil exports, generated $37.88 billion, a sharp increase of 22%.

For the first five months of the year, export turnover was estimated at $215.66 billion, up 19.5% from a year earlier. The domestic sector accounted for $43.5 billion, up 2.5% and representing 20.2% of total exports. The foreign-invested sector generated $172.16 billion, up 24.7%, accounting for 79.8%.

Foreign-invested enterprises continued to play a dominant role in Vietnam's trade performance, contributing nearly 80% of exports and more than 70% of imports.

Meanwhile, imports reached $52.14 billion in May, up 33.8% year-on-year. The domestic sector imported goods worth $13.17 billion, up 22.2%, while the foreign-invested sector imported $38.97 billion, up 38.2%.

By the end of May, total imports had reached $229.46 billion, an increase of 30.8% compared with the same period last year. The domestic sector accounted for $64.26 billion, up 22.7%, while the foreign-invested sector imported $165.2 billion worth of goods, up 34.3%.

Speaking with VietNamNet, Tran Thanh Hai, Deputy Director General of the Agency of Foreign Trade under the Ministry of Industry and Trade, said the trade balance had shifted into deficit despite positive overall import-export growth.

Multiple factors behind the reversal

According to Hai, the deficit resulted from a combination of domestic and international factors.

The conflict in the Middle East has disrupted supply chains and driven energy prices higher, increasing the value of imported fuel and energy products.

Higher oil prices have also pushed up the cost of production inputs such as chemicals, plastics and steel, contributing to larger import bills in these categories.

Foreign-invested manufacturers, particularly those in electronics and computer components, have accelerated imports of raw materials and parts for production while also building inventories amid concerns that prices may continue rising.

At the same time, strong foreign direct investment disbursement and increasing demand for digital transformation and science and technology projects have boosted imports of machinery, equipment and high-tech components.

Meanwhile, key export sectors that traditionally generate trade surpluses, including textiles and garments, footwear, wood products, agricultural products and seafood, have continued to grow but face mounting challenges due to global economic uncertainty, slower demand recovery and rising transportation and insurance costs.

Hai noted that Vietnam's trade performance in the coming months will continue to be influenced by both domestic and international developments.

Globally, consumer demand remains slow to recover, while geopolitical tensions in several regions continue to affect raw material supplies, energy prices and logistics costs.

Growing use of trade remedies, stricter rules of origin requirements, environmental standards, sustainability obligations and green-transition measures are also creating additional challenges for exporters.

Domestically, Vietnam's ambitious economic growth targets for 2026 require exports, investment and consumption to continue playing important roles.

The manufacturing and processing sector remains the country's primary growth engine, sustaining demand for imported materials, machinery and production equipment.

At the same time, ongoing digital transformation, scientific and technological development, innovation and efforts to attract high-quality investment are expected to provide further momentum for import-export activities.

Hai said the outlook for trade during the remainder of the year will depend heavily on global economic conditions, energy prices, geopolitical developments and the outcomes of trade negotiations among major economies, including tariff discussions involving the United States.

Tam An