AsemconnectVietnam - Previous years show that Vietnam typically runs a trade deficit in the first quarter before shifting to a surplus in the latter half of the year.

The current deficit, therefore, is considered both normal and indicative of an economy “recharging” for growth.
Vietnam’s trade performance in the first quarter of 2026 presents a notably upbeat picture, with total turnover reaching 249.5 billion USD, up 23% year-on-year.
Exports rose 19% to 122.93 billion USD while imports climbed 27% to 126.57 billion USD. This robust expansion is laying the groundwork for stronger export growth and higher budget revenues in the quarters ahead.
Rising imports underscore production momentum
According to the Department of Vietnam Customs, the country recorded a trade deficit of 677 million USD in March, bringing the cumulative deficit in the first three months to 3.64 billion USD, compared to a surplus of 3.68 billion USD a year earlier. However, this shift is widely viewed not as a negative signal but as a reflection of the economy’s position in the early phase of a new growth cycle.
Tran Thi Kim Ha, an official from the department, noted that approximately 94% of import turnover comes from production inputs, including machinery, equipment and raw materials. This composition signals that businesses are proactively preparing resources to capture new orders as global demand recovers. Meanwhile, consumer goods account for a relatively small share, placing limited pressure on the trade balance.
Previous years show that Vietnam typically runs a trade deficit in the first quarter before shifting to a surplus in the latter half of the year. The current deficit, therefore, is considered both normal and indicative of an economy “recharging” for growth.
Several factors are driving this trend, including the recovery of international demand, accelerated public investment, and advances in logistics and e-commerce. At the same time, enterprises are stepping up efforts to upgrade and replace machinery and equipment. Foreign direct investment (FDI) inflows also remain strong, exceeding 54 billion USD in the first quarter, up 9.1% year-on-year, further boosting demand for imported inputs.
Revenue gains supported by trade structure
The vibrancy of trade activity has translated into solid gains in state budget revenues. In the first quarter, customs authorities collected over 117.1 trillion VND (4.45 billion USD), equivalent to 26% of the annual plan and up 14.4% year-on-year, according to Vietnam Customs.
This outcome reflects coordinated efforts to streamline administrative procedures, modernise customs operations, and proactively resolve bottlenecks for businesses. Stronger enforcement, improved trade facilitation and enhanced anti-revenue-loss measures have also contributed significantly to higher collections.
At the local level, the trend is evident. In the northern border province of Lang Son, trade turnover reached approximately 24 billion USD in the first quarter, generating 5.59 trillion VND in budget revenue, up 163% year-on-year and fulfilling roughly one-third of the annual target.
Nguyen Huu Vuong, deputy head of the Region 4 Customs Sub-department, attributed this surge to strong growth in imports of raw materials serving export production, alongside improved customs efficiency and stricter revenue management.
However, faster import growth relative to exports also highlights structural challenges, notably the low rate of locally made components. Heavy reliance on imported inputs limits domestic value addition and increases vulnerability to global supply chain disruptions. Developing supporting industries and strengthening domestic production capacity are therefore seen as urgent priorities.
In an increasingly uncertain global environment, the effective utilisation of free trade agreements (FTAs) remains a crucial lever. FTAs not only expand market access but also enable firms to tap into more material sources, advanced technologies and higher production standards. In parallel, diversifying export markets will help mitigate external risks and enhance adaptability.
Over the longer term, improving enterprise competitiveness, through higher productivity, technological adoption, cost optimisation and better product quality, will be decisive./.
Source: VNA