Prime Minister remains committed to a two-digit growth target; turning difficulties and challenges into opportunities to restructure the economy and boost competitiveness

On the morning of April 4, 2026, Prime Minister Pham Minh Chính chaired the regular Government meeting for March 2026 and an online Government conference with local authorities to review economic and social development in the first quarter of 2026 and set key tasks for the second quarter and the coming period.

Q1 growth and sector performance

Vietnam’s GDP in Q1 2026 grew by 7.83%. Growth was supported by all major sectors: agriculture remained stable and expanded by 3.58%; industry and construction grew strongly by 8.92%; and services and tourism increased by 8.18%.

International visitor arrivals reached over 6.7 million, up more than 12% year-on-year.

Local economic momentum

In Q1, 23 out of 34 provinces and cities recorded GRDP growth of 8% or higher. Notable performances included Hà Tĩnh (12.42%), Ninh Bình (11.63%), Hải Phòng (11.21%), and Hưng Yên (10.43%).

Manufacturing outlook and inflation control

The manufacturing PMI in March 2026 stood at 51.2 points, down from 54.3 in February, but still signaled expansion for nine consecutive months since July 2025.

Macroeconomic stability continued and inflation was controlled. CPI in March rose 4.65%, while average Q1 inflation increased by 3.51%.

Budget, trade, and investment

State budget revenue in the first three months reached 829.4 trillion VND, equivalent to 32.8% of the year’s estimate. Tax and fee exemptions or deferrals totaling about 43.6 trillion VND were implemented to support production and business.

Total trade value in Q1 approached $249.5 billion, up about 23%. Exports rose 19.1% and imports increased 27%. The trade deficit was $3.64 billion, mainly due to imports of production materials totaling $118.84 billion (about 94% of import value).

Development investment remained positive. Total societal investment in Q1 rose 10.7% (Q1 2025: +9.4%). Public investment disbursement in the first three months reached 11% of the plan, up 1.2 percentage points in the disbursement rate and up 30 trillion VND in absolute terms versus the same period.

Foreign direct investment (FDI) registered $15.2 billion, up 42.9%, while FDI realized reached $5.4 billion, up 9.1%—the highest for Q1 since 2021.

Business formation and innovation initiatives

In Q1, 96,000 new enterprises registered or resumed operation, up 31.7% year-on-year, while the number leaving the market declined to 91,800.

Science, technology, innovation, and digital transformation continued to be promoted. The Vietnam Space Center was inaugurated, and construction began on the first semiconductor chip plants in Vietnam (Viettel and FPT).

Administrative reform, governance, and social welfare

Administrative reform, anti-corruption efforts, and waste reduction were intensified. Two-tier local government administration was consolidated and operated stably, while decentralization and empowerment were implemented alongside resource allocation.

Social welfare and living standards remained a focus. In Q1, 95.8% of households reported stable or higher income. Workers’ average monthly income reached 9 million VND, up 8.5% year-on-year. Social welfare support totaled nearly 25 trillion VND, up about 39% from Q1 2025. Construction began on 121 boarding schools across 17 border provinces. Vietnam’s Happiness Index in 2026 ranked 45th, up one position from 2025.

Security, foreign affairs, and regional outlook

Independence, sovereignty, and territorial integrity were preserved, and public order and safety were secured. Foreign affairs and international integration expanded, including notable foreign visits by Party and State leaders (including the General Secretary’s visit to the United States and the Prime Minister’s visit to Russia). AMRO projected Vietnam as one of the region’s fastest-growing economies.

Challenges noted and lessons from implementation

While the session highlighted achievements, it also acknowledged remaining challenges, including macroeconomic policy pressures; Q1 growth being strong but below the plan; gaps in the operation of two-tier local government administration; incomplete decentralization of administrative procedures; and security and food safety concerns in some areas.

The Prime Minister summarized five lessons from practice: (1) adhere to central leadership and guidance; (2) stay informed of developments and respond proactively to policy changes; (3) maintain high determination and decisive action with clear responsibilities; (4) strengthen coordination among government agencies, the political system, localities, businesses, and people; and (5) ensure governance is people-centered to mobilize public strength in building and protecting the nation.

Outlook and priorities for Q2 and beyond

Looking ahead, the Prime Minister said the rapidly changing global context also creates opportunities to pivot and transform. The government will continue implementing the Party’s 14th National Congress resolutions and central directives, empowering agencies with the “6 clear” principle.

Key priorities include accelerating public investment with 100% disbursement; promptly approving and implementing science and technology programs, digital transformation, and the green transition; speeding up construction of rail project components and removing legal bottlenecks for stalled projects to free up resources, promote domestic consumption, and reduce business costs; strengthening forecasting capacity, strategic autonomy, competitiveness, and resilience; and continuing to prioritize social welfare, national defense and security, and international integration.