VIETNAM’S GDP EXPANDS 7.83% IN Q1

Shipping containers are handled at a port - PHOTO: VNA

• National Party Congress sets annual GDP growth target at 10% or higher in 2026–2030
• Vietnam targets cultural, creative industries to contribute 9% of GDP by 2045

HCMC – Vietnam’s economy accelerated in the first quarter of 2026, with GDP expanding 7.83%. However, a return to a trade deficit of US$3.64 billion and a sharp rise in inflation in March signal renewed pressure on macroeconomic stability.

Nguyen Thi Huong, head of the National Statistics Office, said in the first quarter socio-economic report that Vietnam’s GDP was estimated to expand 7.83% year-on-year in Q1 2026, higher than the roughly-7% growth recorded in the same period last year.

The agriculture, forestry and fisheries sector grew 3.58%, contributing 5.6% to total value added growth, while industry and construction rose 8.92%, accounting for 44.08%, and services expanded 8.18%, contributing 50.32%.

In March, Vietnam’s total trade turnover reached US$93.55 billion, jumping 39.2% from the previous month and 23.9% year-on-year.

For the first quarter, total trade rose to US$249.5 billion, up 23% from a year earlier, with exports increasing 19.1% and imports climbing 27%, resulting in a trade deficit of $3.64 billion.

Consumer prices also picked up. The CPI rose 1.23% in March from the previous month, 2.44% from December 2025, and 4.65% year-on-year, the fastest March increase in five years. For the quarter, CPI grew 3.51% from a year earlier, while core inflation rose 3.63%.

Retail sales and consumer service revenue exceeded VND1.9 quadrillion, up 10.9% year-on-year.

Vietnam also welcomed 6.76 million international visitors, the highest first quarter figure on record, boosting passenger transport, which rose 18.3%, and freight transport, up 14.5%. Telecommunications revenue contributed more than VND102 trillion.

Meanwhile, newly registered foreign direct investment reached US$15.2 billion, up 42.9% from a year earlier, while disbursed FDI totaled US$5.41 billion, increasing 9.1%.

Vietnamese firms also stepped up overseas expansion, with outbound investment rising 2.6 times year-on-year to nearly US$620 million. Overall, total social investment grew 10.7%, reflecting efforts to sustain growth through diversified funding channels.

Source: The Saigon Times