Maintaining export momentum while promoting sustainable growth

Vietnam remained one of the region's fastest-growing economies in the first half of 2026, with strong export and import growth further enhancing the country's competitiveness despite an increasingly uncertain global economic environment.

Export production at Chang Shin Vietnam Co., Ltd. in Thanh Phu Industrial Park (IP).

A closer examination, however, shows that imports grew even faster than exports, pushing Vietnam's trade deficit above US$16.6 billion. The trend poses new challenges for macroeconomic management while highlighting the need to strengthen export competitiveness and enhance the long-term resilience of domestic enterprises.

Twenty-nine export items exceed US$1 billion

Vietnam's merchandise exports reached US$266.5 billion in the first six months of 2026, up 21 percent from a year earlier. Foreign-invested enterprises (FIEs) continued to contribute nearly 80 percent of Vietnam's total export turnover. A total of 29 export products recorded export turnover exceeding US$1 billion, including five that exceeded US$10 billion, reflecting a more diversified export structure and continued growth in the manufacturing and processing industries.

Imports, however, increased even more rapidly. Vietnam imported goods worth more than US$283 billion during the same period, up more than 33 percent year on year, resulting in a trade deficit exceeding US$16.6 billion and placing additional pressure on trade balance management and macroeconomic stability.

Dong Nai maintained its long-standing position as one of Vietnam's major trade-surplus localities. The city recorded exports of US$17.1 billion in the first half of the year, up 17.6 percent year on year, while imports reached US$12.9 billion, up 20.3 percent.

Commenting on the issue, Tran Thanh Hai, Deputy Director General of the Agency of Foreign Trade under the Ministry of Industry and Trade (MoIT), said that the economy and businesses are currently expanding production capacity. Imports of machinery, equipment, petroleum and a range of production inputs, including steel, chemicals, plastics, textile and garment materials, and leather-footwear inputs, have all increased, reflecting businesses' need to expand production amid market fluctuations. These product groups directly support production and indicate businesses' demand for further investment and production expansion.

Hai noted that while the trade deficit could place short-term pressure on certain macroeconomic indicators, the bulk of imports consisted of machinery, equipment and production materials that would support future manufacturing and export growth.

A more fundamental concern, however, is Vietnam's continued reliance on foreign-invested enterprises to drive export growth. Although domestic enterprises account for the majority of businesses, most remain relatively small in scale and export capacity. While many products are manufactured in Vietnam for export, relatively few are sold under Vietnamese brands.

Economist Tran Van Tho, Professor Emeritus at Waseda University in Tokyo, said Vietnam needed to strengthen the capabilities of its domestic business sector over the long term. He said the experience of successful economies shows that sustained high growth depends on developing a strong national enterprise sector capable of driving economic development.

Promoting sustainable export growth

According to Tran Thanh Hai, the MoIT will continue to support export growth in the second half of 2026 by making better use of free trade agreements (FTAs) and stepping up trade promotion activities.

The MoIT will also further leverage Vietnam Trade Offices abroad to connect domestic businesses with international importers and distribution networks.

For Dong Nai, Vu Ngoc Long, Director of the city's Department of Industry and Trade (DoIT), said global economic fluctuations during the first half of the year had affected local production and exports. Rising international freight rates and fluctuations in several export markets had weighed on exporters during the first half of the year. More recently, however, market conditions have shown signs of stabilizing, particularly as fuel prices have become less volatile, providing a more favorable environment for export growth in the months ahead. In addition to maintaining traditional export markets such as the United States, China, Japan and Europe, Long said businesses should expand into emerging markets, including the Middle East, South Asia, Africa and South America, to diversify export destinations, reduce risks and sustain long-term growth.

Earlier this month, the DoIT met with leading import-export enterprises and industry associations to review trade performance and assess businesses' ability to utilize free trade agreements. Discussions also covered the utilization of FTA tariff preferences, compliance with rules of origin, technical barriers to trade and sustainable development requirements. Based on the outcomes of the meeting, the department will propose measures to improve the implementation of FTAs, help businesses expand into new markets and promote more sustainable export growth.

By V. The – Translated by M.Nguyet, Minho