Vietnam inflation picks up, trade deficit widens in May

Vietnam's economy showed signs of strain in May, with both inflation and trade deficits widening. The annual inflation rate climbed to 5.6%, an increase from April's 5.46%, according to data from the National Statistics Office. This economic pressure is partly attributed to the impact of the Iran war.

Exports in May reached $46.93 billion, a 18% year-on-year increase, but imports surged by 33.8% to $52.14 billion. This resulted in a significant trade deficit of $5.21 billion for the month, a notable jump from April's $3.28 billion deficit. The pace of import growth accelerated, outpacing export growth.

Looking at the first five months of the year, Vietnam's exports grew 19.5% to $215.66 billion, while imports rose 30.8% to $229.46 billion, leading to a cumulative trade deficit of $13.8 billion. Industrial production growth slowed to 8.8% in May from 9.9% in April. Retail sales saw an 11.8% increase. Foreign investment inflows for the January-May period grew 9.6% to $9.75 billion.