Vietnam’s economic growth accelerated in the second quarter compared to the first, government data showed on Friday, but its trade deficit widened to a record over the first six months after a surge in imported fuel costs.

Gross domestic product (GDP) in the April-June period rose 8.39% from a year earlier, faster than the revised 7.94% expansion in the quarter ending in March, the National Statistics Office (NSO) said in a report.

The Southeast Asian manufacturing hub is targeting economic growth of more than 10% this year, supported by stronger infrastructure spending, but its ambitious plans are at risk of being derailed by the impact of the Iran war.

“In the first six months of 2026, the global situation continued to evolve in a complex, uncertain and increasingly unpredictable manner,” the NSO said.

The agency said Vietnam would need to raise growth to 11.7% in the second half of the year to meet its annual target.

The statistics office added that global inflation was accelerating, financial market conditions were more restrictive, and “global economic growth showed signs of slowing”.

The warning came a day after the country’s central bank said that global risks were putting pressure on its policy management and creating mounting inflationary pressures.

Exports of goods rose 28.1% in June from a year earlier to US$50.79 billion, while imports soared 45.2% to US$53.43 billion, resulting in a trade deficit of US$2.64 billion.

This brought the trade deficit for the first half of this year to a record US$16.65 billion, compared with a trade surplus of US$7.95 billion in the same period last year, with the country paying higher prices for imported fuels.

Imports of crude oil in the first half fell 14.2% in volume, but were up 17.7% in value, according to the report. Imports of refined fuels rose 9.6% in volume and 73.5% in value.

Industrial production in June rose 12.7% from a year earlier, while retail sales were up 14.8%, according to the NSO.

Foreign investment ​inflows in the six-month period rose ​11.2% from a year earlier to US$13 billion, the NSO said.