Vietnam's Economic Growth at 7.83 Percent, Highest in 16 Years

HANOI, KOMPAS.com - Vietnam’s economic performance in early 2026 showed significant acceleration. The country’s gross domestic product (GDP) grew by 7.83 percent in the first quarter of 2026 year-on-year (yoy), marking the highest growth rate in the past 16 years. This data indicates an increase compared to the same period in the previous year. In the first quarter of 2025, Vietnam’s economic growth was recorded at 7.05 percent (yoy), reflecting broader strengthening of economic activity at the beginning of this year. One of the main indicators is the continued strong increase in trade and investment activity in the early part of the year. However, citing a Reuters report on Sunday (5/4/2026), compared to the previous quarter, Vietnam’s economic growth in the first quarter of 2026 slightly slowed from 8.46 percent (yoy) in the fourth quarter of 2025. The performance of the external sector became one of the main engines of Vietnam’s economic growth in the first quarter of 2026. On the other hand, imports were recorded at 126.57 billion US dollars or approximately Rp 2,151 trillion, increasing more rapidly at 27 percent year-on-year. This condition resulted in a trade deficit of around 3.64 billion US dollars or equivalent to Rp 61.9 trillion in the first quarter of 2026. In addition to trade, foreign direct investment (FDI) also showed a positive trend. FDI realisation in the first quarter of 2026 reached 5.41 billion US dollars or approximately Rp 91.9 trillion, an increase of 9.1 percent compared to the same period in the previous year. The strong trade and increasing investment flows indicate that Vietnam remains one of the main destinations in the global supply chain, particularly for the manufacturing and export sectors. Domestically, public consumption also recorded solid growth. Retail sales in the first quarter of 2026 grew 10.9 percent year-on-year, indicating that purchasing power remained maintained amid external pressures. Vietnam’s industrial activity also experienced expansion, albeit at a more moderate pace compared to the previous year.