Vietnam's economy continued to show signs of recovery and solid growth across multiple sectors during the first five months of the year, according to the Ministry of Finance's socio-economic report for May and the January-May period.
Vietnam's economy recorded several bright spots in the opening months of 2026 (Photo: Huu Khoa).
Industrial production remained a bright spot. The Index of Industrial Production (IIP) rose 8.8 per cent in May from a year earlier. For the first five months, the index increased 9.1 per cent, marking its strongest growth rate in four years.
Manufacturing continued to lead the recovery, expanding 9.5 per cent and contributing 7.4 percentage points to overall industrial growth. Several industries recorded particularly strong gains, including metal production, up 20.2 per cent; motor vehicle manufacturing, up 18 per cent; chemical production, up 16.9 per cent; and non-metallic mineral products, up 16.2 per cent.
Investment also remained a key growth driver. State budget-funded investment disbursement reached an estimated VND 254.1 billion (approximately USD 9.8 billion) during the first five months, equivalent to 24 per cent of the annual target and up 11.2 per cent from a year earlier.
Foreign direct investment (FDI) inflows rose sharply. Newly registered FDI reached USD 24.81 billion, an increase of 34.9 per cent year-on-year. Disbursed FDI totalled USD 9.75 billion, up 9.6 per cent and the highest level recorded in the past five years. The manufacturing sector continued to attract the largest share of foreign capital.
Business activity also improved significantly. More than 94,800 new enterprises were registered nationwide during the first five months, up 42.1 per cent from the same period last year. Nearly 47,800 businesses resumed operations, bringing the total number of new and returning enterprises to more than 142,600.
Trade and services continued to recover. Total retail sales of goods and consumer service revenue reached an estimated VND 3.18 trillion billion (approximately USD 122.5 billion), up 11.2 per cent year-on-year. Revenue from accommodation and food services increased 13.3 per cent, while travel services rose 12.2 per cent, reflecting improving consumer demand and tourism activity.
State budget revenue reached nearly VND 1.34 trillion billion (approximately USD 51.6 billion) during the first five months, equivalent to 53 per cent of the annual estimate and up 15.3 per cent from a year earlier. Budget expenditure was estimated at VND 843.7 billion (approximately USD 32.5 billion), up 3.1 per cent, with spending focused on socio-economic development, defence, security and investment projects.
External trade maintained strong momentum, with total import-export turnover reaching USD 445.12 billion, up 25 per cent from the same period last year. Exports rose 19.5 per cent to USD 215.66 billion, while imports jumped 30.8 per cent to USD 229.46 billion.
However, the trade balance shifted into a USD 13.8 billion deficit, compared with a USD 5.1 billion surplus a year earlier. Domestic firms recorded a substantial trade deficit, while the FDI sector continued to post a trade surplus.
The United States remained Vietnam's largest export market, with exports valued at USD 69.6 billion. China retained its position as Vietnam's largest source of imports, with imports reaching USD 92.6 billion.
