Vietnam's Economy Booms on Domestic Demand and Tourism Surge

With nearly 16 million international arrivals in eight months and the peak year-end travel season ahead, Vietnam is well placed to move closer to its yearly target of 25 million international visitors. Vietnam's tourism industry served an estimated 6.5 million tourists during the five-day National Day holiday from August 29 to September 2, up 18.1% year-on-year. In the first seven months of 2026, total retail sales of goods and consumer service revenue were estimated at 4.56 quadrillion VND (approximately 174.7 billion USD), up 13.1% year on year, indicating continued growth in the service sector. In response to market changes, many Vietnamese garment and textile companies have proactively shifted their strategies, treating green transition and innovation as integral to business development rather than merely export requirements. Ho Chi Minh City will continue to implement drastic measures to achieve double-digit growth, targeting GRDP growth of at least 11.07% in the third quarter of 2026, 9.43% in the first nine months and 12.3% in the fourth quarter, with a view to completing the full-year goal of 10% or more. In the first eight months of 2026, the capital city attracted more than 3.7 billion USD in FDI, equivalent to 83% of the plan set for the year. Newly registered FDI exceeded 572 million USD across 450 projects, up 175.78% in project numbers and 209.46% in capital compared to the same period last year. Additional registered capital topped 492 million USD, while capital contributions and share purchases exceeded 2.6 billion USD. Previously regarded as the primary material force of the state sector, with a leading role across a broad range of areas, SOEs are now defined as an important material force, with their activities focused on a number of key and strategic industries and sectors, ensuring a pioneering, enabling and leading role in development. Turning the VIFC into an effective channel for international capital will require clear rules, quality projects and strong connections between investors and domestic businesses. Meeting these requirements will be key to transforming investor interest into concrete capital flows and investment projects in Vietnam. International organisations broadly agree that shifting the growth model from reliance on traditional factors toward technology and innovation is no longer an option for Vietnam, but an imperative of the times. An online agricultural wholesale market aimed at expanding trade links between Vietnamese agricultural producers and buyers in Singapore is expected to become operational by the end of September 2026, offering flexible wholesale purchasing options. With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,885 VND/USD, and the floor rate 24,325 VND/USD. Resolution No. 258/NQ-CP, dated August 31, 2026, calls for substantive and comprehensive reform, with a focus on maximum cuts and simplification of administrative procedures and business conditions. It also seeks to shift management from pre-licence inspection to post-licence inspection based on risk management, while strengthening real-time, data-driven oversight and putting people and businesses at the centre of public services. A clear, transparent and stable legal framework would not only enable Petrovietnam to play a leading role in new energy development but also strengthen investor confidence, encouraging both domestic and foreign enterprises to invest, transfer technology and cooperate in developing large-scale CCS projects. The stable presence of the Vietnamese agricultural products on the chain’s online shelves therefore demonstrates Vietnamese suppliers’ ability to meet Russia’s stringent requirements on industrial packaging and plant quarantine. Amid intensifying competition, businesses can no longer rely solely on traditional advantages but must venture into higher value-added sectors, invest in technology, enhance governance capacity and develop markets, an expert has said. In the first eight months, Vietnam's durian export revenue was estimated at 1.95 billion USD, of which exports to China alone fetched 1.85 billion USD or 95%. The country is working very hard to earn 4 billion USD from durian exports this year. Vietnam’s fruit and vegetable exports have grown strongly in recent years, rising from about 7 billion USD in 2024 to 8.6 billion USD in 2025 and expected to surpass 10 billion USD in 2026. The Climate Adaptation Through Irrigation Modernisation Project will directly benefit about 295,500 people. By modernising seven irrigation systems and improving water management, it will help farmers cope with drought, shifting rainfall patterns, and growing competition for water resources. Following the elevation of bilateral ties to a comprehensive strategic partnership and the entry into force of the Vietnam-Eurasian Economic Union Free Trade Agreement, Vietnam-Russia trade increased by an average of 10.8% annually during 2016-2025. However, it reached only about 4.7 billion USD in 2025, remaining modest compared to the two countries' potential and strong political ties. The August CPI was 3.57% higher than in December 2025 and 4.89% higher than a year earlier. On average, the index in the first eight months of 2026 increased 4.45% from the same period last year. Vietnam’s total import-export turnover reached 770.14 billion USD in the first eight months of 2026, the highest-ever figure for the period, up 28.7% year-on-year. Asia remained the largest export market for Vietnam’s major agro-forestry-aquatic products, accounting for 45.5% of the total. It was followed by the Americas and Europe, with shares of 21.5% and 13.4%, respectively. Africa and Oceania made up 2.3% and 1.5%. Notably, the number of new FDI projects rose only 9.4% while their registered capital surged 96.8%, indicating a significant increase in average project size and investors’ stronger commitment from the outset. Copyright, VietnamPlus, Vietnam News Agency (VNA) Editor-in-chief, Mr. Tran Tien Duan.