Vietnam’s economy expanded faster than expected in the second quarter (2Q), underscoring the resilience of its manufacturing sector as robust exports, rising foreign investment and easing inflation kept the country on track toward its ambitious growth target.
According to Bloomberg, its GDP grew 8.39% year-on-year in the April-June period, surpassing the 7% forecast by Bloomberg analysts and accelerating from the revised 7.94% growth recorded in 1Q.
The National Statistics Office attributed the stronger performance to manufacturing, driven by a recovery in export orders and the positive spillover effects of public investment.
Trade also exceeded expectations in June, with exports jumping 28.1% from a year earlier, well above the 20% forecast, while imports surged 45.2%, outpacing estimates of 35%. The strong import growth points to healthy demand for raw materials and production inputs as factories ramp up activity.
Foreign investors continued to pour capital into the Southeast Asian manufacturing hub, with total registered foreign direct investment reaching US$34.65 billion at the end of June, a 61% increase from a year ago.
The latest figures suggest Vietnam has so far weathered the impact of higher US tariffs introduced last year and the energy shock triggered by the Middle East conflict, with government stimulus measures helping to sustain economic momentum.
For the first six months of 2026, the economy grew 8.18%, leaving the government with the challenge of achieving 11.9% growth in the second half to meet its full-year target of at least 10%.
Inflation also showed signs of easing, with consumer prices rising 4.69% in June from a year earlier, down from 5.60% in May, although still above the government’s 4.5% target.
Meanwhile, Vietnam’s trade surplus with the US widened to US$75.3 billion in the first half of the year, up 21.3% from the same period in 2025, reinforcing the country’s position as one of the biggest beneficiaries of global supply chain diversification.
