Vietnam's trade deficit narrowed to $1.05 billion in February from $1.78 billion in January, though exports and imports both grew less than expected. The data from Hanoi's National Statistics Office showed exports rising 5.7% to $33.1 billion, well below the 12.8% growth economists had forecast.

Imports increased 4.4% to $34.1 billion, also trailing projections, with raw materials and production equipment dominating inbound shipments. The statistics office attributed February's 3.35% consumer price inflation to higher food and transport costs during the lunar new year holiday, which fell in February this year compared to January in 2025.

While the deficit shrank, the weaker-than-expected trade data signals potential challenges for Vietnam's economy. The Southeast Asian nation faces headwinds including higher oil prices and Middle East conflict risks. Despite these pressures, Vietnam's total exports rose 18.3% in the first two months of 2026, with the US remaining its largest market at $23.8 billion in goods. The trade surplus with America reached $20.4 billion, up 20.8% year-over-year.