Vietnam’s economy gains momentum on services and industry
Strong spending, tourism and factory output lifted Vietnam at the start of 2026, but Middle East tensions are clouding the outlook.
- Vietnam's economy grew by 7.83% in the first quarter of 2026, an acceleration from 7.07% in the same period a year earlier.
- The services sector was the largest contributor to growth, expanding by 8.18% and accounting for over 50% of the overall increase, driven by tourism and consumer spending.
- The industry and construction sector also posted strong results with 8.92% growth, led by a 9.73% expansion in the key processing and manufacturing sub-sector.
Vietnam’s economy turned in a stronger first quarter, with growth rising to 7.83 per cent in the opening three months of 2026, up from 7.07 per cent a year earlier, as consumer demand, inbound tourism and manufacturing activity remained robust despite mounting global uncertainty.
Speaking at a press conference in Ha Noi on April 4, National Statistics Office (NSO) Director Nguyen Thi Huong said the result had given the country a firmer footing to pursue its full-year growth target, even as external risks, including tensions in the Middle East, continued to weigh on the outlook.
Expansion was seen across the main sectors of the economy, led by services, which grew 8.18 per cent and accounted for 50.32 per cent of overall growth. The sector was supported by Lunar New Year spending and a sharp rebound in foreign arrivals, which drove wholesale and retail trade up 9.62 per cent and transport and warehousing up 8.95 per cent, while financial and information services also contributed to the improvement.
Industry and construction increased 8.92 per cent and made up 44.08 per cent of total growth, with processing and manufacturing again serving as the main engine after expanding 9.73 per cent. Construction rose 8.36 per cent, helped by faster disbursement of public investment, though it still fell short of what was needed given its importance to the 2026 growth target.
Agriculture, forestry and fisheries posted steady growth of 3.58 per cent. The NSO said aquaculture output increased as more advanced technologies were adopted more widely.
In terms of economic structure, services accounted for 43.45 per cent of the economy in the quarter, followed by industry and construction at 37.15 per cent and agriculture, forestry and fisheries at 10.89 per cent. Final consumption rose 8.45 per cent, while asset accumulation increased 7.18 per cent.
External trade also gathered pace. Exports of goods and services climbed 19.85 per cent, while imports rose 24.27 per cent, reflecting stronger demand for raw materials as businesses moved into a new production cycle.
“These positive figures reflect not only timely policy governance but also the resilience and adaptability of Vietnam’s economy and businesses,” Hương said.
Even so, the NSO warned that growth could come under greater pressure in the second quarter as tensions in the Middle East push up oil prices and input costs, raising risks for supply chains and production. It said the Government and businesses would need timely and effective measures to cushion the impact of external headwinds.
VNA/VNS
