Vietnam’s economic growth tops expectations in second quarter

HANOI: Vietnam’s economy expanded at a forecast-busting 8.4% in the second quarter, according to official data Friday, as it overcame import disruptions and higher fuel costs stemming from the Iran war.

The country has long been a success story among Asian economies, and its communist government is targeting double-digit expansion over the next five years.

The April-June year-on-year growth – released by the General Statistics Office – was far better than the 7% estimated in a survey by Bloomberg and an acceleration from the previous quarter’s 7.9%.

The economy expanded 8% last year, making it one of the best performers in the world despite being hit with tariffs from its largest export market, the US.

Growth for the first half of 2026 came in at 8.2% thanks to a strong performance in its manufacturing and construction sectors.

Standre Bezuidenhout, at law firm DFDL, said the country “has been curiously effective at turning geopolitical and supply-chain shifts into investment opportunities”.

Vietnam was “attracting manufacturing, deepening trade integration, and building a reputation as a reliable capital destination”, he said.

The country’s “ability to outperform expectations at a time when many economies are revising growth projections downward” suggests it is “increasingly becoming a beneficiary of global uncertainty, rather than a victim of it”, he added.

Exports in January-June jumped 21% to hit US$266.52 billion, while foreign investment for the same period jumped 61% to US$34.65 billion.

The World Bank upgraded Vietnam to an upper-middle-income country this week, citing strong sustained growth.