Vietnam's Economy Maintains Growth Momentum, Stronger Push Needed for Year-End Sprint

Vietnam's economy maintained its growth momentum, with inflation under control. The consumer price index (CPI) edged down 0.1% in July from the previous month, and the average CPI for the January–July period rose an estimated 4.39% year-on-year, staying within the yearly target. Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan stated that Vietnam's total trade may exceed US$1 trillion in 2026, supported by the effective use of new-generation free trade agreements (FTAs). This outlook highlights Vietnam's increasing integration into global trade. Domestically, businesses are accelerating the adoption of circular economy practices to enhance competitiveness, reduce emissions, and meet increasingly stringent sustainability standards. This reflects Vietnam's commitment to addressing global environmental concerns. Significant reforms in infrastructure planning and development are being called for, with infrastructure identified as a decisive factor in enhancing national competitiveness. A long-term strategic vision is deemed essential for its planning and management. Furthermore, the government's proposal to establish the northern provinces of Quang Ninh and Bac Ninh as centrally governed cities from September 1 and September 20, respectively, received strong support from National Assembly deputies, signaling a focus on regional development and strengthened governance. Ho Chi Minh City is accelerating the digital transformation of its cultural heritage as part of its strategy to develop cultural industries, aiming to preserve the past while making it more engaging and accessible for younger generations. The UNESCO Dak Nong Global Geopark has also emerged as an attractive destination. In diplomacy, Vietnam and Thailand agreed to enhance their relations, with 2026 marking the 50th anniversary of their diplomatic ties. Their Comprehensive Strategic Partnership is noted as one of the most dynamic in the region. Vietnam also emphasized fostering its Comprehensive Strategic Partnership with Malaysia. On the occasion of ASEAN's 59th anniversary and other significant milestones, Vietnam reaffirmed its commitment to strengthening its role in the region. The National Assembly stressed the need to continue legal and institutional reforms and accelerate digital transformation to avoid hindering the country's rapid and sustainable development. Source: VietnamPlus English