Vietnam's inflation accelerates in April, trade deficit widens

Vietnam's consumer prices rose 5.46 per cent in April from the same month last year, accelerating from 4.65 per cent in March, driven by higher energy costs linked to the Iran conflict. The National Statistics Office reported that this rise was due to higher domestic gas prices aligning with global fuel prices, along with rising material and transport costs, which pushed up prices for services and construction. April industrial production increased by 9.9 per cent year-on-year, up from March’s 4.6 per cent growth. Exports surged 21 per cent to US$45.52 billion, while imports rose 32.5 per cent to US$48.8 billion, widening the trade deficit to US$3.28 billion from US$677 million in March. Over the first four months of the year, exports grew 19.7 per cent to US$168.5 billion, and imports increased 28.7 per cent to US$175.64 billion, resulting in a cumulative trade deficit of US$7.1 billion. Foreign investment inflows rose 9.8 per cent to US$7.4 billion in the first four months, while public investment disbursement grew 16.4 per cent year-on-year to US$5.8 billion, accounting for 13.7 per cent of the government’s full-year plan. Vietnam’s trade surplus with the US increased 24.4 per cent to US$46.9 billion, while its deficit with China expanded 33.4 per cent to US$46.4 billion. The Finance Ministry forecasted inflation could reach 5.5 per cent this year, exceeding the government’s 4.5 per cent target, primarily due to the Iran conflict’s impact.