Vietnam's Gross Domestic Product (GDP) expanded by 7.83% in the first quarter of 2026 compared to a year earlier, according to the National Statistics Office. This figure surpassed the median estimate of 7.6% from a Bloomberg survey of economists, though it was a slowdown from the 8.46% growth recorded in the fourth quarter of 2025. This growth occurred despite increased energy costs caused by Middle East tensions and disruptions to global trade routes.
Key drivers of this economic expansion include a significant increase in foreign direct investment (FDI), which reached over $15.2 billion in Q1 2026, a 42.9% year-on-year increase, with $5.4 billion in disbursed FDI. Domestic consumption grew 8.45% year-on-year, and the services sector expanded by 8.18%, attracting a record 6.76 million international tourists. The industrial and construction sector grew by 8.92%, with electronics, computers, and components exports surging by 45.5% to $30.7 billion, more than double the overall export growth rate of 19.1%.
Vietnam's Q1 2026 performance contrasted sharply with its regional neighbors, many of whom experienced slower growth. For instance, Malaysia grew by 5.3%, Singapore by 4.6%, and Thailand and the Philippines each grew by only 2.8%. While Indonesia exceeded analyst expectations with 5.61% growth, it still lagged behind Vietnam. The Philippines, in particular, was affected by rising fuel prices, leading to a five-year low in growth and higher inflation. Vietnam's strong export position and import structure, with 94.1% of imports being raw materials and machinery, helped it remain resilient against global energy shocks.
