AsemconnectVietnam - Production, investment, and the domestic market showed steady growth in the first eight months of 2026, laying the foundation for Vietnam to capitalize on the technology cycle and supply chain shifts.

Industry and domestic market maintain growth momentum
According to a report released on September 8 by the Institute for Strategy and Policy on Industry and Trade, Vietnam's economy continued to show positive signs during the first eight months of 2026, particularly in industrial production, investment, consumption, and import-export activities. The report draws on findings from a seminar held by the Institute on September 4 regarding the impact of global and domestic socio-economic conditions on Vietnam's industrial, energy, and trade development.
The report notes that the Index of Industrial Production (IIP) for August 2026 was estimated to have risen by 1.5% month-on-month and 14.4% year-on-year. For the eight-month period, the IIP grew by 11.9%, surpassing the 8.5% growth recorded during the same period in 2025. Notably, industrial production increased across all 34 surveyed provinces and cities.
Trends in the Purchasing Managers' Index (PMI) also indicate continued expansion in manufacturing activity. Vietnam's manufacturing PMI reached 53.3 points in August, up from 52.9 points in July, marking the 14th consecutive month it has remained above the 50-point threshold. Output expanded at its fastest pace in over two years, while new orders continued to improve, driven by customer demand and the launch of new products.
The domestic market continues to play a supportive role in growth. Total retail sales of goods and consumer services in August were estimated at VND 679.8 trillion, up by 1.6% month-on-month and 14.9% year-on-year. For the first eight months of the year, the total reached VND 5,235.5 trillion, a 13.3% increase; excluding price factors, the growth rate was 7.6%.
These figures indicate that Vietnam's economic growth momentum over the eight-month period stemmed not only from the export-oriented manufacturing sector but was also bolstered by investment and domestic consumer demand.
Strong export growth
Foreign trade activity continued to expand significantly. In August of 2026, the total value of goods exports and imports reached USD 109.7 billion, a year-on-year increase of 31.7%. Specifically, exports totaled USD 54.79 billion (up by 26%), while imports stood at USD 54.91 billion (up by 37.9%).
Over the eight-month period, total trade turnover reached USD 770.14 billion, up by 28.7% year-on-year, the highest level recorded for this period to date. The exports amounted to USD 374.84 billion (up by 22.4%), and imports reached USD 395.30 billion (up by 35.3%).
Trade composition reveals that the surge in imports was primarily driven by the demand for production inputs. The production materials group accounted for 94.11% of total import value, while the processing and manufacturing sector generated USD 337.99 billion in exports, representing 90.17% of the total export value.
Notably, electronics, computers, and components remained the largest product category in terms of value for both exports and imports. Over the eight-month period, the exports in this group reached US$101.059 billion (up by 51.1%), while imports totaled US$161.63 billion (up by 68.3%). The exports of machinery, equipment, tools, and spare parts amounted to US$47.289 billion (up by 26.4%), and imports reached US$47.4 billion (up by 22.1%).
This structure reflects the deepening integration of Vietnamese manufacturing into regional supply chains, while also highlighting a significant reliance on imported components, machinery, and raw materials.
The FDI sector continued to play a dominant role in exports, accounting for 80.1% of the total export turnover during the eight-month period. This sector recorded US$300.37 billion in exports and US$290.23 billion in imports. In contrast, the domestic economic sector exported US$74.47 billion but imported US$105.07 billion.
Looking ahead, international trade remains a major factor influencing Vietnam's economic outlook. Reports indicate that the conflict in the Middle East, fluctuating energy prices, and the tariff policies of major economies are making the trade environment increasingly unpredictable.
For Vietnam, pressure stems not only from tariff measures but also from requirements regarding rules of origin, traceability, labor standards, intellectual property, and the prevention of trade fraud. Meanwhile, the EU continues to raise the bar for technical standards, circular packaging requirements, and carbon emission controls.
This indicated that Vietnamese enterprises, particularly those in key export industries, need to enhance their capacity to meet these standards.
At the same time, as the EVFTA entered its sixth year, it continues to facilitate the expansion of trade between Vietnam and the EU. According to a survey cited in the report, 50% of EU businesses in Vietnam stated they had directly benefited from EVFTA tariff preferences, while 66% reported cost savings ranging from 5% to 30%.
For Vietnam's economy, ensuring energy security remains crucial as industrial production expands rapidly. In August, several Battery Energy Storage Systems (BESS) began operations at 110 kV substations managed by EVNNPC. The deployment of BESS provides an initial tool for load regulation, helping to alleviate localized overloads and improve power supply reliability in areas with high industrial load demand. However, reports indicated that the scale of BESS capacity commissioned in August remains small relative to the total system load; consequently, the immediate impact is primarily experimental, serving to gather data for assessing the feasibility of scaling up the technology.
Source: VITIC/congthuong.vn