(Hanoi, 5th) The escalation of tensions in the Middle East has driven up energy prices and impacted global supply chains, causing Vietnam's economic growth to slow in the first quarter of this year. However, despite inflationary pressures and external uncertainties, the Vietnamese government remains committed to achieving double-digit growth this year.
According to a report released by the General Statistics Office of Vietnam on Saturday (April 4), Vietnam's Gross Domestic Product (GDP) grew 7.83% year-on-year from January to March this year. Although this figure is higher than the earlier market forecast of 7.6%, it is lower than the 8.46% recorded in the fourth quarter of last year. Achieving at least 10% economic growth this year will likely become even more difficult for Vietnam.
Over 80% of Vietnam's imported crude oil comes from the Middle East, and oil shipments from the region have been hindered by the Iran war. The statistics office pointed out: "Cost inputs and rising energy prices continue to exert inflationary pressure, posing challenges for economic management."
Driven by a 10.81% surge in transportation costs, Vietnam's Consumer Price Index in March rose by 4.65%, accelerating from 3.35% in February.
Soaring fuel prices have forced Vietnamese airlines to cut flights, and the government has introduced countermeasures, including reducing fuel taxes, tapping emergency funds to stabilize oil prices, and encouraging work from home to reduce fuel consumption.
On the trade front, Vietnam's exports in the first quarter grew by 19.1% to 122.93 billion US dollars (about 577.771 billion ringgit), while imports increased 27% to 126.57 billion US dollars, resulting in a trade deficit of 3.64 billion US dollars.
Foreign investors remain confident in Vietnam. In the first quarter, foreign direct investment (FDI) inflows increased by 9.1% to 5.41 billion US dollars, while pledged investment—an indicator for future inflows—surged by 42.9% to 15.2 billion US dollars.
Nguyen Thi Huong, the head of the General Statistics Office, said: "As we enter the second quarter, Vietnam's socio-economic development still faces many obstacles, and achieving the 2026 growth target will remain extremely difficult."
Vietnamese Prime Minister Pham Minh Chinh said at the cabinet meeting on Saturday that the government will maintain its full-year growth target of 10%, with a commitment to increase public investment, diversify export markets, and shift supply chains away from the Middle East to other regions.
Over 80% of Vietnam's imported crude oil comes from the Middle East, and oil shipments from the region have been hindered by the Iran war. The statistics office pointed out: "Cost inputs and rising energy prices continue to exert inflationary pressure, posing challenges for economic management."
Driven by a 10.81% surge in transportation costs, Vietnam's Consumer Price Index in March rose by 4.65%, accelerating from 3.35% in February.
Soaring fuel prices have forced Vietnamese airlines to cut flights, and the government has introduced countermeasures, including reducing fuel taxes, tapping emergency funds to stabilize oil prices, and encouraging work from home to reduce fuel consumption.
On the trade front, Vietnam's exports in the first quarter grew by 19.1% to 122.93 billion US dollars (about 577.771 billion ringgit), while imports increased 27% to 126.57 billion US dollars, resulting in a trade deficit of 3.64 billion US dollars.
Foreign investors remain confident in Vietnam. In the first quarter, foreign direct investment (FDI) inflows increased by 9.1% to 5.41 billion US dollars, while pledged investment—an indicator for future inflows—surged by 42.9% to 15.2 billion US dollars.
Nguyen Thi Huong, the head of the General Statistics Office, said: "As we enter the second quarter, Vietnam's socio-economic development still faces many obstacles, and achieving the 2026 growth target will remain extremely difficult."
Vietnamese Prime Minister Pham Minh Chinh said at the cabinet meeting on Saturday that the government will maintain its full-year growth target of 10%, with a commitment to increase public investment, diversify export markets, and shift supply chains away from the Middle East to other regions.