Key Highlights:

Vietnam’s economy maintained positive growth momentum in the first five months of 2026, with key drivers coming from industrial production, domestic consumption, and investment inflows. Although global energy prices were affected by heightened tensions in the Middle East, domestic price levels remained broadly under control, providing a favorable environment for economic activities. Specifically:

• The average Consumer Price Index (CPI) in the first five months increased by 4.31% year-on-year, with CPI in May rising by 0.29% month-on-month and 5.6% year-on-year. This indicates that inflationary pressure remains present, although it has not yet posed a significant risk to macroeconomic stability.
• Domestic consumption continued to be a bright spot, as total retail sales of goods and consumer service revenue increased by 11.2% year-on-year in the first five months of the year.
• In the production sector, the Index of Industrial Production (IIP) rose by 9.1% year-on-year in the first five months, with the manufacturing and processing sector — the main growth driver of the economy — recording an increase of 9.5%.
• International trade activities continued to expand strongly, with export turnover increasing by 19.5% and import turnover rising by 30.8% year-on-year. However, the significantly higher growth rate of imports led to a trade deficit of approximately USD 13.8 billion in the first five months. Nevertheless, this development partly reflects stronger demand for imported machinery, equipment, and raw materials for production amid rising investment and manufacturing activities.
• Foreign direct investment (FDI) inflows remained a bright spot for the economy. Total registered FDI reached USD 24.8 billion, up 34.9% year-on-year, while disbursed FDI stood at USD 9.7 billion, up 9.6%. This shows that Vietnam continues to maintain strong appeal in global investors’ supply chain relocation and capital allocation strategies.
• In addition, public investment disbursement reached approximately USD 7.8 billion, up 11.8% year-on-year and completing 18.4% of the annual plan. The improved pace of disbursement continued to play an important role in driving economic growth, supporting infrastructure construction activities, and creating spillover effects across various related sectors.