Vietnam sets ambitious GDP growth target of at least 10% in 2026


A vendor pushes a cart full of shoes across the street in the Old Quarter of Hanoi, Vietnam. — AP

HANOI: Vietnamese Prime Minister Pham Minh Chinh says the government will target record gross domestic product (GDP) growth of at least 10% in 2026, stating that the South-East Asian economy had proven resilient despite pressure from external shocks.

Growth this year is estimated at 8%, Chinh told the opening of the new parliamentary session, adding that the government would maintain its target of achieving growth above 8%.

The session, which will run until Dec 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 next five years.

Chinh also said inflation would be below 4% this year, lower than the official target of 4.5% to 5%.

Over the first nine months of the year, GDP expanded by an annual 7.85%.

The World Bank projected growth of 6.6% this year, while the International Monetary Fund estimated 6.5%.

“The Vietnamese economy has proven strong enough to withstand external shocks, remaining one of the fastest-growing in the world,” the prime minister told Parliament.

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

However, Vietnam is facing other challenges, including mounting pressure on macroeconomic stability, volatility in the gold and property markets, air pollution, natural disasters, and cybercrime, Chinh said.

“Development still relies heavily on cheap labour and resources, rather than on science, technology, innovation, and digital transformation,” he added.

Chinh 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 also aimed to begin construction of its multi-billion-dollar North–South high-speed railway and launch satellite internet services next year, he said. — Reuters

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Vietnam , GDP , World Bank , trade , inflation

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