HCM City’s economy expanded by 8.27 per cent year on year in the first quarter of 2026, marking its strongest performance for the same period in five years, according to the municipal statistics office.
The city’s gross regional domestic product (GRDP) was estimated at VND 760.9 trillion (about USD 30 billion). Excluding crude oil, growth reached 8.58 per cent.
Despite headwinds from global trade volatility, rising logistics costs and higher energy prices, the result highlights the city’s resilience and provides a solid foundation for further expansion in the remaining quarters of 2026.
The services sector remained the primary growth driver, expanding 8.9 per cent and accounting for 51.9 per cent of GRDP, while contributing 56 per cent to overall growth.
Among the nine key service industries, trade activity rose 8.9 per cent, making up 12.5 per cent of GRDP and contributing 13.3 per cent to growth, reflecting sustained domestic demand. However, the pace lagged behind the broader services sector, suggesting a gradual slowdown in consumption recovery and signs of market saturation.
Authorities said future growth in trade will largely depend on the effectiveness of expanded consumer stimulus programmes.
Transport and logistics emerged as the fastest-growing segment, rising 12.2 per cent and contributing 13.8 per cent to GRDP growth, supported by increased investment in public transport infrastructure and the rapid expansion of e-commerce.
Although accounting for just 9.5 per cent of GRDP, the logistics sector is playing an increasingly important role in improving efficiency and supporting broader service sector growth.
Financial services grew 8.3 per cent, contributing 6.4 per cent to overall expansion, as credit demand showed signs of recovery and banks continued to introduce support measures for businesses and households. However, credit growth in the city remained below the national average, indicating ongoing bottlenecks in capital absorption.
The real estate sector continued to face challenges, expanding 5.2 per cent and contributing only about 2.1 per cent to overall growth, limiting spillover effects on construction.
Accommodation and food services increased 5.7 per cent, contributing around 1.1 per cent, a relatively modest rise despite a series of cultural and tourism events, partly due to a high base effect from the same period last year.
Elsewhere, budget revenues maintained a positive trajectory, particularly from production and business activities. Product taxes net of subsidies rose 7.9 per cent, reflecting stronger goods and service output and reinforcing the city’s fiscal position.
