Vietnam Economy Grows 8.39% as Trade Deficit Widens

HANOI, JOURNALARTA.COM – Vietnam’s economy posted a fairly impressive performance in Q2 2026, with gross domestic product (GDP) growth reaching 8.39% compared with the same period last year. The result beat the previous quarter’s 7.94% pace, underscoring Vietnam’s position as one of Southeast Asia’s major manufacturing hubs.

Growth Drivers

The industry and construction sector was the main contributor to the GDP surge, growing 10.51% in Q2 2026. The sector made up the largest share of the country’s GDP, at 50.07%.

The gains were driven by recovering export orders and the effectiveness of the government’s public investment implementation. In addition, the services sector also provided a positive boost with growth of 7.87%.

Trade Deficit Challenge

However, behind the optimistic growth figures, Vietnam faces a serious challenge in the form of a widening trade deficit. In June alone, although exports grew 28.1% year on year to US$ 50.79 billion, a sharp increase in imports of 45.2% to US$ 53.43 billion triggered a monthly deficit of US$ 2.64 billion. On an accumulated basis, the trade deficit in the first half of 2026 had reached US$ 16.65 billion.

The main cause of the deficit was the sharp rise in energy import costs. Although crude oil import volume fell 14.2%, its value jumped 17.7% because of high global prices. A similar pattern occurred in refined fuel imports, where volume rose 9.6% but value surged 73.5%.

Impact on Foreign Exchange Reserves

The widening trade deficit is putting pressure on Vietnam’s foreign exchange reserves. Data show the country’s reserve position is currently below the safe level recommended by the International Monetary Fund (IMF).

The situation has drawn attention from economists because limited foreign exchange reserves could reduce the country’s resilience to future external economic shocks.

Conclusion

Overall, while Vietnam has managed to maintain strong economic growth momentum, structural challenges related to the trade balance and reserve stability call for closer attention.

The Vietnamese government is expected to take strategic steps to balance energy needs with domestic production capacity to sustain long-term economic growth.

Frequently Asked Questions (FAQ)

1. What was Vietnam’s economic growth rate in Q2 2026?

Vietnam’s economy grew 8.39% in Q2 2026, topping the previous quarter’s 7.94%.

2. What is the main cause of Vietnam’s trade deficit?

The deficit was driven by a surge in refined fuel and crude oil import values due to high global energy prices, even as crude oil import volumes fell.

3. What is the current state of Vietnam’s foreign exchange reserves?

Vietnam’s foreign exchange reserves are reported to be below the safe level or the threshold recommended by the International Monetary Fund (IMF).

4. Which sector contributed most to Vietnam’s GDP growth?

The industry and construction sector was the main driver, contributing 50.07% of GDP and growing 10.51% in Q2 2026.