Maintaining growth momentum amid headwinds, reaffirming the two-digit growth target

Vietnam’s socio-economic performance in the first quarter of 2026 maintained a generally positive trajectory despite heightened global uncertainty, Prime Minister Pham Minh Chính said in remarks at a government conference reviewing March and Q1 results.

The Prime Minister pointed to rapid and complex changes in the global environment, including shifts in U.S. tariff policy, the ongoing war in Ukraine, and intensifying tensions in the Middle East that have disrupted supply chains and pushed up prices for oil, gas and transport. He said global commodity, financial, monetary and precious metals markets saw sharp fluctuations, raising risk and uncertainty.

Q1 2026: Growth momentum, inflation contained

Domestically, major political events—including the 14th National Congress of the Communist Party, the election of the 16th National Assembly and People’s Councils for the 2026–2031 term, and the second plenum of the Party Central Committee—were held successfully, providing what the Prime Minister described as a solid political and social foundation for development.

He said that thanks to the decisive involvement of the political system, public consensus and business support under the leadership of the Politburo and the Secretariat and led by General Secretary To Lâm, the socio-economic situation in Q1 2026 developed positively and comprehensively. The Prime Minister said macroeconomic indicators remained fundamentally stable, inflation was kept in check, and major economic balances were safeguarded. He also cited continued attention to social welfare, strengthened defense and security, and progress in external affairs and international integration.

However, the Prime Minister noted that macroeconomic management faced significant pressure. He also highlighted challenges in energy security, that Q1 growth did not meet the scenario, and that administrative procedures remained cumbersome. He added that decentralization and devolution were not fully implemented, online public services were not yet truly user-friendly, and some local authorities still needed consolidation. He also said food safety and safety remained a complex issue.

Key economic and financial indicators

According to the Prime Minister’s assessment, Vietnam’s Q1 2026 growth rate was approximately 7.83% year-on-year. He said 23 of 34 localities achieved GRDP growth of 8% or higher, with Hà Tĩnh, Ninh Bình, Hải Phòng and Hưng Yên posting two-digit growth.

• CPI: up about 3.51% in the first quarter, below the annual inflation target.
• State budget revenue: 829.4 trillion VND, 32.8% of the estimate, up 11.4% year-on-year.
• Export–import value: 249.5 billion USD, up 23%.
• Social investment: 744.7 trillion VND, up 10.7%.
• Registered FDI: 15.2 billion USD, up 42.9%.
• Realized FDI: estimated at 5.4 billion USD, up 9.1%.

Policy focus: institutions, disbursement and new growth drivers

The Prime Minister said the Government and ministries continued to strengthen the institutional framework, implement Politburo breakthrough resolutions, improve the investment and business environment, and promote new growth drivers. He noted a campaign to promptly address the backlog of regulations and detailed provisions implementing laws and resolutions.

He also said social welfare continued to be safeguarded and people’s incomes improved. He cited progress on the housing support program for people affected by natural disasters and said Vietnam’s happiness index in 2026 rose by one rank compared with 2025. He added that education, culture, sports, information and communications continued to receive attention, while defense, security and public order remained solid and diplomacy and international integration remained a bright spot.

Outlook and government priorities for the rest of 2026

Concluding the conference, the Prime Minister reaffirmed the Government’s commitment to the two-digit growth target, linking it to macroeconomic stability, inflation control and safeguarding major economic balances to support sustainable development in 2026 and beyond.

He urged ministries and localities to identify breakthrough drivers and concrete solutions, assign responsibilities under the spirit of “6 clarity,” and push for 100% disbursement of public investment. He also called for prompt implementation of programs on science, technology, innovation, digital transformation and green transformation, and for resolutely avoiding projects that have funding but no implementation.

On economic measures, the Prime Minister called for diversification of markets, products and export supply chains; stimulation of domestic demand; robust development of the domestic market; removal of obstacles to production and business; and selective attraction of private investment and FDI.

He also emphasized policy coordination, calling for close alignment between proactive monetary policy and moderately expansionary fiscal policy, flexible management of interest rates, exchange rates and credit, and channeling capital into production and business and prioritized sectors. He further urged strengthening financial discipline and governance.

In energy, he said the Government must ensure national energy security both now and in the long term, and “absolutely avoid” electricity or fuel shortages for production and daily life. He also called for resolving backlogs in stalled projects to free up resources and curb waste.

Beyond economic tasks, the Prime Minister urged continued focus on cultural and social development, social welfare and raising living standards, including developing social housing. He also called for strengthening national defense, security and public order, and expanding diplomacy—especially economic diplomacy and technology diplomacy—to maintain peace and stability for development.

He said ministries and localities should enhance forecast capacity and prepare operating scenarios to seize opportunities, overcome challenges and build new momentum for growth in response to external shocks.