Vietnam's economy expanded strongly beyond expectations in the second quarter of 2026, growing over 8.4% despite impacts from conflicts in the Middle East, rising energy costs, and global economic volatility. Export and foreign direct investment growth remained outstanding, leading the World Bank to upgrade Vietnam to an "upper-middle-income country."
Vietnam's General Statistics Office reported that Vietnam's gross domestic product (GDP) for April to June 2026 grew 8.39% compared to the same period last year, surpassing Bloomberg analysts' forecast of 7% and accelerating from 7.9% growth in the first quarter.
As a result, Vietnam's economy expanded 8.18% in the first half of 2026, higher than 7.63% in the same period last year, remaining one of the world's fastest-growing economies.
The Vietnamese government aims to push economic growth into double digits over the next five years, following an 8% expansion in 2025 despite facing US import tariffs, with the US being the country's largest export market.
The industrial and construction sectors continue to be the main drivers, with value added increasing 9.86% in the first half, accounting for more than 40% of total economic growth. The services sector grew 8.09%, supported by recovery in consumption, trade, and tourism, while agriculture expanded 3.57% due to increased agricultural exports.
In international trade, Vietnam's total trade value reached $549.7 billion in the first six months, with exports rising 21% to $266.52 billion and imports increasing 37%, resulting in a trade deficit of $16.65 billion, reversing a $7.95 billion surplus in the same period last year.
The United States remains Vietnam's top export market, with exports valued at $86.5 billion, while China is the largest source of imports, totaling $115.2 billion.
Foreign direct investment continued strong growth, reaching $34.65 billion in the first half, a 61% increase from the previous year, reflecting foreign investors' confidence in Vietnam's economy.
Additionally, more than 169,800 new or resumed businesses were established, despite about 151,100 businesses suspending operations or exiting the market. A survey of manufacturing entrepreneurs found that 39.4% expect business conditions to improve in the third quarter.
However, Vietnam still faces inflationary pressures, with the consumer price index rising an average of 5.25% in the second quarter year-on-year and 4.38% over the first half of the year.
Nguyen Thi Huong, Director of Vietnam's General Statistics Office, stated that despite ongoing global uncertainty from geopolitical conflicts and wars in multiple regions, Vietnam's economy remains stable, with domestic demand, tourism, and manufacturing continuing to expand.
Meanwhile, the World Bank announced this week the upgrade of Vietnam to an "upper-middle-income country," citing the country's strong and sustained long-term economic growth despite risks from the global economy in the second half of the year.
/sourceVnExpress/ AFP