AsemconnectVietnam - Vietnam GDP growth accelerated in the second quarter of 2026, with an increase in the industrial output; FDI; retail sale and the number of tourist arrivals. However, the country recorded trade deficit in June of 2026.

Vietnam’s economic growth increased in second quarter of 2026
Vietnam’s economy expanded 8.39% year – on - year in the second quarter of 2026, increased from an upwardly revised 7.94% in the previous period and lifting the economic growth in the first half of this yeawr to to 8.18%.
In the second quarter of this year, all sectors saw solid gains: industry & construction increased by 10.51% (vs 9.01% in the first quarter), contributing 50.07% of total value added; services sector rose by 7.87% (vs 8.33%), accounting for 44.28%, while agriculture grew 4.06% (vs 3.68%), with a 5.65% share.
On the expenditure side, final consumption grew 8.15%, and fixed investment jumped 15.20%.
The country’s exports of goods and services increased by 20.18%, while the imports increaed by 26.44%.
Vietnam is targeting economic growth of more than 10% this year, supported by stronger infrastructure spending. However, the ambitious goal risks being derailed by fallout from the war in Iran.
Meanwhile, annual inflation eased to 4.69% in June from May's 5.6%, moving closer to the government's 4.5% inflation target this year.
The World Bank reclassified Vietnam as an upper-middle-income economy, effective July 1.
Vietnam’s trade balance recorded a deficit of USD 2.64 billion in June of 2026
Vietnam recorded a trade deficit of USD 2.64 billion in June of 2026, shifting from a surplus of USD 3.2 billion in the same month a year earlier. The countr’s exports increased by 28.1% year-on-year to a record high of USD 50.79 billion, while imports increased at a faster pace of 45.2% to a record high of USD 53.43 billion. In the first half of the year, the country posted a USD 16.65 billion trade deficit, with exports rising 21.0% year – on - year to USD 266.52 billion, and imports increasing by 33.4% to USD 283.17 billion.
In the first half of this year, the country’s exports of processed industrial goods were estimated at USD 239.8 billion, accounting for 90.0% of total exports.
The US remained the largest export market, with exports estimated at USD 86.5 billion. Meanwhile, imports of production materials were estimated at USD 266.4 billion, accounting for 94.1% of total imports. China remained the largest source of imports, with import turnover estimated at USD 115.2 billion.
Vietnam's inflation rate fell in June of 2026
Vietnam’s annual inflation rate eased to 4.69% in June of 2026 from 5.60% in the previous month. This marked the lowest reading since February of 2025, as price growth moderated in food (4.89% vs 5.03% in May), alcoholic beverages and tobacco (4.21% vs 4.29%), clothing and footwear (2.19% vs 2.37%), housing utilities (7.17% vs 8.19%), transportation (5.29% vs 12.48%), and miscellaneous goods and services (4.08% vs 4.22%).
In contrast, costs increased in furnishing and household equipment (3.17% vs 3.12%), health (1.20% vs 1.19%), information and communication (0.13% vs 0.07%), and recreation and culture (3.32% vs 2.91%), while inflation remained steady in education (at 3.39%).
On a monthly basis, consumer prices fell 0.39% in May, following a 0.29% gain. Meanwhile, the annual inflation rose by 4.50%, easing from 4.67% in the preceding period.
Vietnam's industrial output increased in June of 2026
Vietnam’s industrial production expanded 12.7% year-on-year in June of 2026, accelerating from an upwardly revised 10.1% growth in May and marking its strongest increase in five months. The pickup was driven by faster growth across all major sectors, led by electricity and gas supply (16.6% vs. 10.3% in May), manufacturing and processing (12.6% vs. 10.7%), mining and quarrying (8.8% vs. 4.0%), and water supply, waste management, and wastewater treatment (8.7% vs. 6.2%). On a monthly basis, industrial output rose 3.5%, signaling continued strength in the sector. For the first half of 2026, industrial production increased 10.8% compared with the same period a year earlier, highlighting sustained momentum in Vietnam's industrial activity.
FDI into Vietnam increased in the first half of 2026
Foreign direct investment (FDI) disbursed in Vietnam increased 11.2% year-on-year to USD 13.03 billion in the first half of 2026, marking the highest level of FDI implementation for the first six months of the year in at least 18 years.
During the first half of this year, Vietnam recorded 94 newly licensed overseas investment projects, totaling USD 820.3 million, 2.3 times higher than in the previous year. Additionally, there were 15 projects with adjusted capital, which rose by USD 388.9 million, three times the level recorded a year earlier.
Overall, total overseas investment, including both new and adjusted capital, reached USD 1.21 billion, 2.5 times higher than the same period last year. Meanwhile, total registered foreign investment in Vietnam, including newly registered capital, adjusted registered capital, and capital contributions and share purchases by foreign investors, amounted to USD 34.65 billion in June, up 61.0% from a year ago.
Vietnam's number of tourist arrivals increased by 14.7%
International arrivals to Vietnam rose 14.7% year-on-year to a nine-month low of 1.68 million in June of 2026, easing from 16.5% in the previous month. Even so, growth remained broad-based across key source markets. The number of visitors from Asia, Vietnam's largest tourism market, increased 8.2%, driven by growth from China (9.1%), Japan (15.6%), Malaysia (34.9%), Thailand (20.1%), and Singapore (32.3%).
Meanwhile, the arrivals from the Americas climbed 14.5%, supported by stronger visitor numbers from the United States (14.0%) and Canada (21.7%). The arrivals from Europe surged 67.4%, led by a sharp increase in visitors from Russia (151.1%), alongside gains from the United Kingdom (13.3%), France (18.5%), and Germany (23.4%). The visitor numbers from Australia rose 26.7%, while arrivals from Africa increased 28.4%. In the first six months of 2026, international arrivals to Vietnam totaled 12.25 million, up 14.9% from the same period a year earlier.
Vietnam's retail sales increased nearly 15% in June of 2026
Retail sales in Vietnam rose by 14.8% year-on-year in June of 2026, accelerating from an 11.8% increase in the previous month and marking the strongest growth since January of 2023. All major categories recorded stronger growth, with retail sales of goods, representing 75.6% of total activity, increasing 13.4% after rising 11.3% in May.
Sales also strengthened further in accommodation, food, and beverage services (19.7% vs. 15.4%), travel and tourism (24.9% vs. 15.4%), and other services (17.9% vs. 10.8%).
In the first half of 2026, total retail sales rose 12.9% compared with the same period a year earlier.
CK
Source: VITIC/tradingeconomics.com