Business

Vietnam Targets 10% GDP Growth in 2026
By Reuters | 19 Oct, 2025

20% US tariffs hasn't suppressed Vietnam's strong export momentum from efforts by US importers to seek Vietnamese alternatives to Chinese manufacturers.

Vietnamese Prime Minister Pham Minh Chinh said on Monday the government would target record GDP growth of at least 10% in 2026, saying the Southeast Asian economy had proven resilient despite pressure from external shocks.

Growth this year was estimated at 8%, Chinh told the opening of the new parliamentary session, adding the government would stick to its target of aiming for growth above 8%.

The session, which will last until December 11 and include voting on key government and state appointments, precedes an important party congress that will define the country's main strategies and policies for the coming five years.

Chinh said inflation will be below 4% this year, lower than the official target of 4.5% to 5.0%. 

Over the first nine months of the year, GDP expanded by an annual 7.85%. The World Bank projects 6.6% growth this year, while the International Monetary Fund estimates 6.5%.

"The Vietnamese economy has proven to be strong enough to withstand external shocks, staying as one of the fastest-growing ones in the world," Chinh told parliament. 

Chinh also said the value of Vietnam's goods trade was expected to reach $900 billion in 2025, despite a 20% tariff that has slowed exports to the United States, particularly footwear and textiles.

Vietnam, however, is facing other challenges, including mounting pressure on macroeconomic stability, volatility in the gold and real estate markets, air pollution, natural disasters and cybercrimes, he said.

"Development still relies heavily on cheap labour and resources, not on science, technology, innovation and digital transformation," he added.

He reiterated Vietnam's intention to sign new free trade agreements next year with countries in the Middle East, Latin America, and Africa to diversify export markets.

Vietnam aims to begin construction of its multi-billion-dollar North-South high-speed railway and launch satellite internet services next year, he said. 

(Reporting by Khanh Vu; Additional reporting by Phuong Nguyen; Writing by Martin Petty; Editing by John Mair and Kate Mayberry)