Vietnam Sees Strongest Seven-Month Industrial Production Growth in Years; Exports, FDI Also Robust

The National Statistics Office (NSO) reported that Vietnam's industrial production in the first seven months of the year achieved its strongest growth in recent years. The manufacturing and processing sector served as the primary driver, contributing 33.07% to the economy's total value-added growth in the first half of the year. Total import-export turnover reached US$659.58 billion in the first seven months, up 28.1% year-on-year. Exports of agro-forestry-aquatic products also showed strength, totaling nearly US$42.8 billion from January to July, a 7.5% increase from the same period last year. The agricultural sector's GDP expanded by over 3.8%, exceeding the government's 3.7% target, underpinned by stable production, particularly in key industries. Disbursed foreign direct investment (FDI) also saw an increase, reaching an estimated US$15.2 billion in the January-July period, up 11.8% year-on-year, marking the highest seven-month disbursement in five years. The number of newly established enterprises exceeded 125,900 between January and July, a 16.9% rise from the previous year. Regarding inflation, the Consumer Price Index (CPI) edged down 0.1% in July from the previous month. The average CPI for the January-July period rose an estimated 4.39% year-on-year, staying within the annual target. Core inflation increased by 4.19%. In light of these robust economic figures, international financial institutions such as Standard Chartered, UOB, and DBS have revised their growth forecasts for Vietnam upward. Standard Chartered projects GDP growth of 9.5% in 2026 and 11% in 2027. Vietnam is committed to achieving carbon neutrality by 2050, with green hydrogen seen as a strategic solution for decarbonizing sectors difficult to electrify, including heavy industry, long-distance transport, shipping, and aviation. The government has also extended the exemption of agricultural land use tax until December 31, 2030, and allowed businesses and individuals to defer payments of VAT, corporate income tax, and personal income tax during 2026. Ho Chi Minh City is seeking investment for approximately 250 projects across nine priority sectors, focusing on areas such as developing an International Financial Centre, digital finance, smart banking, supporting data infrastructure, large-scale logistics and port developments, transport infrastructure supporting trade, import-export activities, industry and smart logistics, green industries, clean energy, and next-generation industrial parks. Source: VietnamPlus English