Vietnam posts 7.83pc Q1 growth despite Middle East war driving fuel costs higher

HANOI, April 5 — Vietnam recorded economic growth of 7.83 per cent in the first quarter of 2026 year-on-year, the statistics office said on Saturday, but faces “numerous difficulties” as the Middle East war hits fuel prices.

First-quarter growth was up from 7.07 per cent last year after strong gains in industrial production, construction and services during the Tet festive season.

“Vietnam’s socio-economic performance in the first quarter of 2026 recorded positive results amid ongoing global uncertainties and challenges,” the General Statistics Office (GSO) said in a statement.

It said the conflict in the Middle East “triggered sharp energy price volatility, disrupted supply chains, and intensified inflationary pressures”.

Exports from the Southeast Asian manufacturing hub to the United States jumped 24.2 per cent year-on-year to US$33.9 billion, the GSO said.

Overall exports rose 19.1 per cent to US$122.93 billion from the first quarter in 2025, while imports climbed 27.0 per cent to US$126.57 billion.

China was Vietnam’s largest source of imports, the statistics office said.

Vietnam’s Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said “domestic fuel supply is currently sufficient to meet production and consumption needs through the end of April 2026”, according to the government’s website.

GSO Director Nguyen Thi Huong said Vietnam faced “numerous difficulties and challenges, particularly as the country’s highly open economy is exposed to overlapping impacts from global economic headwinds” as it enters the second quarter.

Vietnam hiked fuel prices again this week, bringing the cost of diesel to 44,780 dong (US$1.7) per litre—up more than 140 per cent since late February.

The price of regular gasoline was up more than 28 per cent to 26,970 dong (US$1.02) per litre.

Hanoi has dipped into an emergency fuel price stabilisation fund and scrapped environmental taxes to ease pressure on fuel prices.

Vietnam aims to grow its economy by at least 10 per cent this year and is seeking “middle-income country” status by 2030. — AFP