Vietnam Inflation and Trade Deficit Hit Record Highs
Vietnam's annual inflation rate rose to 5.6 percent in May as the country faced higher prices for imported fuels. The trade deficit expanded to a record 5.21 billion dollars during the month while industrial production growth slowed to 8.8 percent.
Vietnam saw inflation accelerate to 5.6% in May as its trade deficit widened to a record $5.21 billion. The gap grew from $3.28 billion in April as the cost of imported energy surged. Rising fuel prices are pressuring the export-reliant economy as the Southeast Asian nation feels the impact of the war involving Iran.
### Energy Costs Drive Trade Imbalance The National Statistics Office reported that while May exports rose 18% to $46.93 billion, imports jumped 33.8% to $52.14 billion. This imbalance pushed the five-month trade deficit to $13.8 billion. Annual export growth slowed from the 21% pace recorded in April, while import growth accelerated slightly from 32.5%.
