VIETNAM’S economy slowed in the first quarter from the three months prior, data showed yesterday, as heavy exposure to Middle Eastern oil imports boosted inflation, presenting a challenge in reaching an annual growth target, authorities said.
Gross domestic product grew 7.83 per cent in the quarter from January to March over the corresponding period a year earlier, but below 8.46pc in the fourth quarter, the National Statistics Office said in a report.
“The pressure from rising input costs and energy prices on inflation remains, posing challenges for economic governance,” the NSO added yesterday.
Consumer prices rose 4.65pc in March on the year, driven by a surge of 10.81pc in transport costs, it said, accelerating from a rise of 3.35pc in February.
This year’s growth target of at least 10pc is under pressure as the Southeast Asian economy imports more than 80pc of crude oil supplies from the Middle East, where the Iran war, now in its sixth week, has disrupted shipments.
“Entering the second quarter, Vietnam’s socio-economic situation continues to face obstacles, and meeting the 2026 growth target remains a big challenge,” said NSO Director Nguyen Thi Huong.
Rising fuel prices have spurred Vietnamese airlines to scale back operations and government efforts to cut costs, such as reducing taxes on fuel, subsidising prices and encouraging remote work to reduce consumption.
Growth was up from the 7.05pc on-year expansion of the first quarter of 2025.
Exports rose 20.1pc in March to $46.44 billion from a year earlier, the report said. March industrial production rose 6.9pc from a year earlier, but slowed from growth of 8.6pc in the corresponding month last year.
The war has driven up petrol prices 21pc and diesel prices by 84pc in Vietnam, data from top fuel trader Petrolimex shows.
Senior officials have sought alternative oil sources from suppliers such as Gulf states, Japan and South Korea.
Vietnam’s March imports rose 27.8pc to $47.11bn, for a monthly trade deficit of $670 million.
For the first quarter, exports rose 19.1pc to $122.93bn and imports were up 27.0pc at $126.57bn, for a deficit of $3.64bn.
Quarterly retail sales rose 10.9pc.
Foreign investment inflows in the first quarter rose 9.1pc on the year to $5.41bn, the NSO said, while pledges, which indicate the size of future inflows, rose 42.9pc to $15.2bn.
Vietnam will retain its target of 10pc growth this year despite challenges, Prime Minister Pham Minh Chinh said yesterday, promising steps such as greater public investment and diversification of export markets and supply chains.
“Our country still faces limitations, shortcomings, and many difficulties, challenges and risks related to the pressure of macroeconomic management and ensuring energy security,” Chinh told a cabinet meeting.
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