The deficit in May rose to $5.21 billion, according to data released by the National Statistics Office in Hanoi Wednesday. That was well above the median estimate in a Bloomberg News survey for a $3.98 billion shortfall, as well as the revised $3.99 billion deficit reported for April.

Vietnam’s exports jumped 18% in May, the statistics office said, slower than economists’ forecast of 19.7% growth. Imports were higher than expected at 33.8%.

The widening shortfall “was driven largely by higher import costs for energy and semiconductor components, as concerns over global chip shortages and rising prices prompted many companies to increase purchases and build up inventories,” according to Pham Vu Thang Long, chief economist at Ho Chi Minh City Securities.

The data shows the cost to Vietnam’s manufacturing-led economy as the war in the Middle East pushes up crude oil and other input costs. It also faces renewed trade uncertainty after the US proposed new tariffs on imports from most major trading partners following an investigation into forced-labor practices, which would hit Vietnam.

For the first five months of 2026, Vietnam’s trade deficit totaled $13.8 billion, overturning a $5.1 billion trade surplus in the same period last year.

“The record high deficit will weaken the country’s balance of payments position and add more pressure on the dong and FX reserves,” Long said.

The headwinds risk stalling one of Asia’s fastest-growing economies, with the government already warning it could be “challenging” to meet its 10% growth goal this year. Vietnam is set to report its second-quarter economic performance in July.

The US remains Vietnam’s biggest export market; its January-May trade surplus with the world’s biggest economy increased 21.1% to $60.4 billion from a year earlier, according to the statistics office.

China was Vietnam’s top source of imports, shipping an estimated $92.6 billion of goods in the first five months of the year.

Production input goods accounted for 94.1% of Vietnam’s total imports, reaching $215.99 billion in January-May. Imports of electronics, computers and components surged 57.1% while machinery, equipment and spare parts were up 21.6%.