Eight out of 12 national databases and 67 specialized databases have been connected and synchronized with the National Data Center, delivering tangible value to citizens and businesses, according to the Ministry of Public Security.

Speaking at the Government’s regular press briefing for August on September 3, Major General Nguyen Quoc Toan, Chief of Office and Spokesperson for the Ministry of Public Security, provided updates on data creation, standardization, connection, and sharing.

He stated that an intensive campaign launched on July 1 aimed to resolve key bottlenecks in the political system's digital transformation.

Implementation has progressed from initial review and preparation to generating concrete, real-world results. Among specialized databases, 67 have been connected and synchronized, with 23 fully meeting data quality standards for continued integration.

The volume of synchronized data remains substantial. The national population database contains over 108 million records, the electronic civil status database holds more than 113 million records, and the national insurance database features over 48 million records.

This data connectivity is driving practical administrative reform. Following feedback from ministries, sectors, and localities, 498 out of 786 administrative procedures have been reduced or replaced, while 244 procedures have been eliminated entirely.

The Ministry of Public Security highlighted that these outcomes directly benefit citizens and enterprises while actively contributing to national socio-economic development.

Vietnam's goods trade deficit stood at $20.46 billion in the first eight months of the year, but pressure on the trade balance showed signs of easing as the deficit narrowed to just $120 million in August. Notably, the improvement came as total trade turnover hit a record high.

According to the National Statistics Office, Vietnam's total goods trade turnover reached $109.7 billion in August, up 31.7% from a year earlier. In the first eight months, the figure was $770.14 billion, up 28.7% year-on-year and the highest level ever recorded for the January-August period.

Exports reached $54.79 billion in August, up 3.2% from July and 26% from a year earlier. Imports, meanwhile, stood at $54.91 billion, down 3.1% month-on-month but still up 37.9% year-on-year.

The shift in the relative performance of the two sides of trade quickly narrowed the deficit. Vietnam's trade deficit fell to just $120 million in August from $3.59 billion in July.

Trade deficit narrows as imports cool

The August figures become more notable when viewed against the trend in previous months. Vietnam's trade deficit stood at $5.21 billion in May 2026 and narrowed to $2.64 billion in June before widening again to $3.59 billion in July. After seven months, the cumulative deficit had reached $20.52 billion.

In August, the trade balance was almost back to equilibrium. A deficit of just $120 million showed that the gap between exports and imports had narrowed significantly in a single month.

The main driver was the slowdown in imports. In the first eight months, imports reached $395.3 billion, up 35.3%, significantly faster than the 22.4% growth in exports. However, imports fell 3.1% from the previous month in August, while exports rose 3.2%.

This was an important shift because the widening gap between the growth rates of exports and imports had been the main factor behind the large trade deficits in previous months.

Still, the month-on-month decline in imports does not necessarily signal a slowdown in manufacturing activity. In the first eight months, capital goods and production inputs accounted for $372.04 billion, or 94.1% of total imports. The composition shows that most imported goods were still machinery, equipment, materials and other inputs for the economy.

This also ties in with the trend analyzed in July: a trade deficit is not necessarily a negative signal if foreign currency is being used to import production inputs that are subsequently converted into products, export orders and revenue.

The key question now is whether the low trade deficit recorded in August can be sustained in the final months of the year.

Behind the $20.46 billion deficit

Vietnam posted a cumulative trade deficit of $20.46 billion in the first eight months, compared with a trade surplus of $14.02 billion in the same period last year. So despite the sharp narrowing of the deficit in August, the cumulative trade balance remains under considerable pressure.

The divergence between the domestic and foreign-invested sectors remains particularly pronounced. The domestic sector recorded a trade deficit of $30.6 billion, while the foreign-invested sector, including crude oil, posted a surplus of $10.14 billion.

The FDI sector continued to account for 80.1% of total exports, with exports worth $300.37 billion, up 26.9%. The domestic sector, meanwhile, recorded exports of $74.47 billion, up just 7.4%, accounting for 19.9% of total exports.

These figures show that despite the improvement in the trade balance in August, the underlying structural issue remains unresolved. Trade volumes are expanding rapidly, but the ability of domestic companies to generate value and export remains significantly weaker than that of the FDI sector.

On the one hand, the fact that capital goods and production inputs accounted for 94.1% of imports shows that imported goods are largely supporting production and investment. On the other hand, if most machinery, components and raw materials still have to be sourced from abroad, the amount of value added retained in Vietnam will remain limited.

Therefore, what matters in the coming months is not only whether the trade balance returns to surplus, but also whether the narrowing deficit is driven by stronger exports or simply by slower imports.

If exports maintain their growth momentum while imports stabilize after their sharp increase, the trade balance has room to improve. In that case, foreign currency earnings from exports would help offset foreign currency demand for imports and ease pressure on the foreign exchange market.

Conversely, if imports continue to grow rapidly while exports fail to generate a corresponding increase in domestic value added, the trade deficit could become a structural issue rather than merely a short-term phenomenon.

After eight months, Vietnam's trade balance remains in a $20.46 billion deficit. But with the monthly deficit falling from $3.59 billion in July to just $120 million in August, the pace of deterioration has clearly begun to ease. This will be a key trend to watch in the final months of the year.

Textiles and garments are among Việt Nam’s major export categories to the UK and are considered one of the sectors that benefit significantly from the UKVFTA.

HÀ NỘI — The UK-Vietnam Free Trade Agreement (UKVFTA) has helped boost Việt Nam’s textile and garment exports to the UK, but maintaining market share and achieving sustainable growth will require exporters to adapt to increasingly stringent market requirements.

Textiles and garments are among Việt Nam’s major exports to the UK and one of the sectors benefiting significantly from the trade agreement.

According to the Vietnam Textile and Apparel Association (VITAS), exports to the UK accounted for 1.7 per cent of Việt Nam’s total textile and garment export turnover in 2020. The share rose to 2 per cent last year, reflecting the growing importance of the UK as Vietnamese businesses diversify their export markets.

Under the UKVFTA’s tariff commitments, 42.5 per cent of tariff lines were eliminated from January 1, 2021, with the remainder phased out over two, four or six years, helping improve the price competitiveness of Vietnamese products in the UK.

The outlook for exports remains positive. The UK economy is gradually stabilising, while easing inflation is expected to support consumer purchasing power. At the same time, efforts by UK importers to diversify their supply chains are creating additional opportunities for Vietnamese suppliers.

Alexandra Smith, British consul general in HCM City and trade director for Việt Nam, told Công Thương (Industry and Trade) newspaper that there remained significant room for cooperation between the two countries.

She said further progress could be achieved by focusing on areas where the UK has strengths and Việt Nam has clear development needs, as more businesses take advantage of favourable trade conditions.

Despite rising export turnover, Việt Nam’s share of the UK textile and garment market remains modest, with the UK importing around US$20 billion worth of textiles and garments annually.

One major challenge is compliance with the UKVFTA’s two-stage rule of origin, under which both fabric production and garment manufacturing must take place in Việt Nam or the UK for products to qualify for preferential tariffs. Việt Nam, however, remains heavily dependent on imported fabrics.

VITAS data shows that fabric imports increased from $11.9 billion in 2020 to about $15 billion last year, reaching $8.9 billion in the first seven months of this year.

The UKVFTA provides some flexibility by allowing Vietnamese exporters to use fabrics imported from South Korea, which has a free trade agreement with the UK. However, Korean fabrics are generally more expensive than those from China and Taiwan.

Beyond tariffs and rules of origin, exporters face increasingly demanding compliance requirements. Environmental standards, emissions, labour practices, social responsibility, traceability and supply chain transparency are becoming important criteria for UK buyers when selecting suppliers.

VITAS chairman Vũ Đức Giang said brands and importing markets were imposing multiple layers of requirements, ranging from audits to origin certification. This requires businesses to develop management systems and software capable of demonstrating the origin of goods, the validity of customs declarations and other relevant data.

The Ministry of Industry and Trade has recommended that textile and garment businesses strengthen production capacity, move into higher-value stages of production, diversify sources of raw materials across the region and develop domestic supply chains.

Businesses should also improve their understanding of rules of origin, closely monitor market demand and select orders that match their capabilities.

In the longer term, product quality will remain crucial. Businesses also need to gradually reduce their dependence on contract manufacturing and increase investment in design, branding and digital transformation, while developing direct relationships with UK retailers and distributors.