Vietnam sustains growth momentum in first five months, bolstering double-digit target
Vietnam’s economy maintained positive growth momentum in the first five months of 2026, driven by strong industrial production, rising domestic demand, robust exports, and increasing foreign investment inflows, providing a solid foundation for the Government’s double-digit growth target this year.
Addressing the Government’s regular meeting for May on June 3, Prime Minister Le Minh Hung said that despite increasingly complex and unpredictable global developments, the Government had closely followed the Party and National Assembly’s directions while implementing socio-economic development tasks, institutional reforms, and growth-support measures.
He stressed that the remaining months of the year would require greater efforts to boost growth while maintaining macroeconomic stability, controlling inflation, and ensuring major economic balances.
Minister of Finance Ngo Van Tuan reported that the economy remained broadly stable, with many key indicators posting positive results.
Industrial production continued to be a major growth driver. The Index of Industrial Production (IIP) in May increased 8.8% year-on-year, while the five-month figure rose 9.1%, the highest growth rate in four years. Manufacturing and processing expanded by 9.5%, contributing 7.4 percentage points to overall industrial growth.
Investment also supported economic expansion. State budget-funded investment disbursement was estimated at 254.1 trillion VND (about 9.6 billion USD) in the first five months, equal to 24% of the annual plan and up 11.2% from a year earlier.
Registered foreign direct investment (FDI) reached 24.81 billion USD, up 34.9% year-on-year, while disbursed FDI hit 9.75 billion USD, up 9.6% and the highest level in five years. Manufacturing and processing remained the largest recipient of foreign capital.
Business activity showed strong momentum, with more than 94,800 newly established enterprises and nearly 47,800 firms resuming operations during the January-May period, bringing the total number of new and re-entering businesses to over 142,600.
Domestic consumption continued to recover, with total retail sales of goods and consumer service revenues rising more than 11%, the highest level since 2024. International tourist arrivals reached nearly 11 million, up almost 15% and marking a record high.
State budget revenue totalled nearly 1.34 quadrillion VND, equivalent to 53% of the annual estimate and up 15.3% year-on-year. Budget expenditure was estimated at 843.7 trillion VND, up 3.1%, according to VNA.
 |
| A worker produces mechanical products at EXEDY Vietnam Co., Ltd. in the Khai Quang Industrial Park, Phu Tho province. (Photo: VNA) |
Trade activities remained vibrant, with total import-export turnover reaching 445.12 billion USD, up 25% year-on-year. Exports rose 19.5% to 215.66 billion USD, while imports increased 30.8% to 229.46 billion USD, resulting in a trade deficit of 13.8 billion USD, compared with a surplus of 5.1 billion USD a year earlier.
Despite the positive results, challenges remain, including inflationary pressures, risks from extreme weather affecting agricultural production, and the need to ensure adequate electricity and fuel supplies.
The Prime Minister called for faster public investment disbursement and urged ministries, sectors, and localities to remove bottlenecks related to site clearance, construction materials, and investment procedures to accelerate national key projects.
The Ministry of Finance proposed maintaining the double-digit growth target while safeguarding macroeconomic stability and accelerating public investment, particularly in ministries and localities with low disbursement rates.
The State Bank of Vietnam has continued to maintain stable interest rates and liquidity, while the Ministry of Industry and Trade has been tasked with ensuring adequate fuel and electricity supplies, promoting trade, stimulating domestic consumption, and supporting a greener and more sustainable growth model.
Vietnam sees regional cooperation as foundation of broader international strategy: Thai scholar
Vietnam views regional cooperation as the foundation of its broader international strategy, according to Thai scholar Supalak Ganjanakhundee.
Speaking in an interview with Vietnam News Agency (VNA) correspondents in Bangkok regarding the recent visits by General Secretary of the Communist Party of Vietnam (CPV) Central Committee and State President To Lam to three Southeast Asian countries and his keynote address at the Shangri-La Dialogue, Supalak noted that before presenting Vietnam’s vision for regional peace and security at a major international forum, the top Vietnamese leader visited Thailand, one of the key members of the Association of Southeast Asian Nations (ASEAN). This underscored the importance Vietnam attaches to ASEAN and its relations with neighbouring countries.
Commenting on General Secretary and President Lam’s keynote speech at the Shangri-La Dialogue, Supalak said the Vietnamese leader identified three interrelated crises shaping the current global landscape – the crisis of international order, the crisis of development models and the crisis of strategic trust.
This analytical framework, he noted, reflects Vietnam’s broader understanding of contemporary security, extending beyond traditional military concerns to include economic resilience, technology governance and the maintenance of stable international rules.
One of the most notable aspects of the speech was Vietnam’s emphasis on preventive diplomacy, dialogue, reconciliation, mediation and confidence-building mechanisms. According to Supalak, the call for risk-reduction measures reflects Vietnam’s growing confidence as a regional actor willing to contribute to shaping the regional environment.
The scholar also highlighted Vietnam’s strong support for ASEAN centrality as a key message of the speech. In his view, the top Vietnamese leader’s interpretation of ASEAN centrality goes beyond merely preserving ASEAN-led forums. Instead, ASEAN should become more effective in preventing conflicts, managing tensions and maintaining strategic stability amid intensifying major-power competition.
Supalak said Vietnam is increasingly moving beyond adapting to regional developments and is now playing a more active role in shaping them. This was clearly reflected in the leader’s emphasis on dialogue, preventive diplomacy, strategic trust, international law and ASEAN centrality as essential pillars of regional stability.
The scholar further observed that Vietnam appears increasingly willing to contribute to regional stability beyond its immediate national interests. Its emphasis on reconciliation, mediation, trust-building measures and preventive diplomacy demonstrates the emergence of Vietnam as a stable middle power committed to strengthening regional institutions, promoting international law and ensuring that great-power competition does not undermine peace and prosperity in the Asia-Pacific, reported VNA.
 |
| Thai scholar Supalak Ganjanakhundee talks to the Vietnam News Agency. (Photo: VNA) |
According to Supalak, the significance of the speech for ASEAN lies in the vision it offers for responding to a more uncertain and competitive strategic environment. Rather than focusing solely on military security, the Vietnamese leader framed regional challenges through the lenses of international order, development and strategic trust, highlighting the need for ASEAN to play a more proactive role in risk management and crisis prevention.
The scholar concluded that the speech’s importance lies not in its immediate policy implications but in what it reveals about Vietnam’s evolving perspective on ASEAN. It demonstrates that Vietnam increasingly views the bloc not only as a diplomatic forum but also as a vital mechanism for safeguarding regional stability amid growing geopolitical uncertainties.
International arrivals to Vietnam reach record high in first five months
Vietnam welcomed 10.6 million international visitors in the first five months of 2026, the highest figure ever recorded for the January–May period, according to the National Statistics Office under the Ministry of Finance.
The number represented a 14.9% increase compared with the same period last year, reinforcing the strong recovery momentum of the country’s tourism industry.
In May alone, Vietnam received 1.78 million foreign visitors, up 16.5% year on year. Earlier, April recorded 2.03 million international arrivals, up 22.8% and marking the fourth consecutive month the country welcomed over 2 million foreign tourists.
Vietnam attracted 6.76 million international visitors in the first quarter of 2026, the highest first-quarter figure on record. It was also the first time the country maintained three consecutive months with more than 2 million international arrivals each, VOV reported.
 |
| International tourists enjoy a boat tour in Can Tho City. |
The tourism boom was also reflected in Hanoi’s performance. Statistics show the capital received an estimated 14.98 million visitors in the first five months, up 17.2% year on year. International arrivals rose 28.1% to 4.06 million, while domestic travelers increased 13.7% to 10.92 million.
Vietnam's tourism industry aims to welcome 25 million international visitors and 150 million domestic travelers in 2026, with total tourism revenue projected at around VND1.1 quadrillion (US$42 billion). The continued surge in foreign arrivals has boosted optimism that the ambitious target could be achieved ahead of schedule.
Heavy rain to follow heatwave across northern Vietnam next week
Meteorologists forecast heavy rain in northern Vietnam from June 8-10 after several days of intense heat.
Weather patterns across Vietnam are expected to remain sharply divided in the coming days, with northern regions alternating between heatwaves and thunderstorms, central provinces enduring intense heat, and the Central Highlands and southern regions continuing to experience frequent evening rainfall.
According to the National Center for Hydro-Meteorological Forecasting, weather conditions in northern Vietnam will remain complex as heat temporarily eases under the influence of thunderstorms developing in mountainous areas due to a wind convergence zone. Hot weather is then expected to intensify again before thunderstorms become more widespread across the region from June 8-10.
Meanwhile, central Vietnam remains the country's heat hotspot. Under the influence of a western low-pressure system combined with foehn winds, many areas are forecast to experience severe heat, with some locations facing exceptionally intense conditions.
Along the south-central coast, weather conditions are expected to be more moderate, with intermittent sunshine during the day. However, scattered showers and thunderstorms may develop in the evening and at night, with localized heavy rainfall possible.
In the Central Highlands and southern Vietnam, a low-pressure trough combined with the southwest monsoon will continue to trigger widespread showers and thunderstorms, mainly during the late afternoon and evening. Some areas could experience heavy to very heavy rain.
Forecast for June 4-13
From the night of June 3 through June 5, northern Vietnam will experience highly variable weather.
During June 4, scattered showers and thunderstorms are expected during the evening and overnight hours. Mountainous areas will see more widespread rainfall of 15-30mm, with isolated locations receiving more than 80mm. Most of the rainfall is expected during the afternoon and evening.
Daytime conditions will remain sunny, with some areas experiencing hot weather. Midland and delta provinces are expected to face widespread heatwave conditions, with isolated pockets of severe heat.
From the night of June 4 through June 5, northern Vietnam is forecast to see moderate to heavy rain and thunderstorms during the evening and overnight hours, with rainfall totals ranging from 20-40mm and isolated areas exceeding 100mm. Daytime thunderstorms will remain scattered, while heatwave conditions persist across the delta region.
From Thanh Hoa to Da Nang and eastern parts of Quang Ngai Province, scattered showers and thunderstorms are expected during the evening and overnight hours. Daytime temperatures will remain high, with widespread heatwaves and severe heat, while some locations may experience exceptionally intense heat.
Central coastal provinces are expected to follow a similar pattern, with isolated evening showers but persistent daytime heat and severe heat.
Southern Vietnam and Lam Dong Province will continue to experience scattered showers and thunderstorms during the afternoon and evening, with localized heavy to very heavy rainfall, cited VNN.
 |
| Northern Vietnam is expected to alternate between heatwaves and thunderstorms in the coming days. Photo: Hoang Minh. |
Other parts of the country are expected to see isolated showers and thunderstorms, especially during the late afternoon and evening, when rainfall could become locally heavy.
Widespread thunderstorms expected in the north
Looking further ahead to June 5-13, meteorologists say northern Vietnam will continue to alternate between periods of hot weather and thunderstorms.
On June 6-7, midland and delta areas are forecast to experience heatwave conditions, with some locations reaching severe levels. From the night of June 5 through June 7, mountainous areas are expected to receive scattered showers and thunderstorms, with localized heavy rainfall concentrated during the evening and overnight periods.
Of particular note, from the evening of June 8 through June 13, showers and thunderstorms are expected to become more widespread across northern Vietnam.
During the period from the night of June 8 through June 10, strengthening continental high pressure combined with upper-level wind convergence may trigger moderate to heavy rainfall, with isolated areas receiving very heavy downpours.
For the north-central region, hot weather and severe heat are expected to continue from the night of June 5 through June 8. Scattered evening thunderstorms are also possible. From June 8-13, showers and thunderstorms are forecast to become more widespread, with localized heavy rainfall.
Central coastal provinces are expected to maintain hot and severely hot conditions during the daytime, while scattered showers may occur during the evening and overnight hours.
Across the rest of the country, isolated showers and thunderstorms are forecast in the late afternoon and evening, while daytime conditions remain generally sunny, with some areas experiencing hot weather.
The Central Highlands and southern Vietnam are expected to continue seeing scattered showers and thunderstorms on most days during the forecast period.
Meteorologists warned that thunderstorms nationwide could be accompanied by tornadoes, lightning, hail and strong gusty winds. Residents are advised to closely monitor forecasts and take appropriate precautions.
 | Vietnam News Today (May 31): Vietnam, Australia foster Comprehensive Strategic Partnership Vietnam News Today (May 31): Top Vietnamese leader meets Singaporean Parliament Speaker; Vietnam, Australia foster Comprehensive Strategic Partnership; Finland eyes stronger cooperation with Vietnam in ... |
 | Vietnam News Today (Jun. 1): General Secretary and President To Lam arrives in Manila for state visit to Philippines; Shangri-La Dialogue: Vietnam’s vision praised as ... |
