Vietnam posted a rare monthly trade deficit in February as imports surged during the month, government data showed on Thursday, though the country's surplus with the United States increased in the opening months of 2025.

The Southeast Asian nation, a regional manufacturing hub, is heavily dependent on export-driven economic growth and faces risks from global trade disputes, including the potential imposition of tariffs by the United States.

Vietnam posted a trade deficit of $1.55 billion in February, after a $3.02 billion surplus in January, the General Statistics Office said. It was only the third monthly deficit since the start of 2023, as per GSO and London Stock Exchange Group data.

February's exports rose by 25.7% from a year earlier while imports surged by 40%, primarily due to increased imports of dairy products, automobiles and metal products, the GSO said.

Over the January-February period, the GSO said there was a trade surplus of $1.47 billion, aligning with figures published by the government on its portal the previous day.

Combining data for the two months can smooth out distortions from the timing of Lunar New Year holidays, which fell in January this year and February last year.

The GSO data showed that for the January-February period, exports rose by an annual 8.4% and imports were up by 15.9%.

U.S. surplus, China deficit

In the first two months of 2025, Vietnam's trade surplus with the U.S. reached $17 billion, up 16.3% from a year earlier, while its deficit with China widened by 36.9% to $15.4 billion.

Vietnam is worried about being hit with reciprocal tariffs by the U.S. government. The U.S. is Vietnam's largest export market, while China is its biggest source of imports.

Vietnam has long been suspected of being a transshipment hub for Chinese goods to the U.S., given the huge volumes of intermediate goods it imports from China.

Other data released by the GSO showed industrial production rose by 17.2% in February from a year earlier, picking up from January's 0.6% growth, and retail sales rose 9.4%.

Foreign investment inflows rose 5.4% in the January-February period from a year earlier to about $3 billion, and foreign investment pledges rose by an annual 35.5% to $6.9 billion.