Ho Chi Minh City, July 4, 2026 – The Europe Today: Ho Chi Minh City’s economy expanded by 8.55 per cent in the first half of 2026, driven by robust domestic consumption, resilient industrial production, a sustained recovery in tourism and a sharp increase in foreign direct investment (FDI), according to the city’s Statistics Office.
Official data showed that the city’s gross regional domestic product (GRDP) grew by 8.57 per cent in the first quarter and 8.53 per cent in the second quarter, reflecting steady economic momentum despite global economic uncertainties.
The services sector remained the principal driver of growth, expanding 8.89 per cent during the first six months of the year. It accounted for 54 per cent of the city’s GRDP and contributed 56 per cent of overall economic growth.
Among service industries, the transport sector posted the strongest performance with growth of 13.68 per cent, followed by trade at 8.4 per cent and finance at 8.21 per cent, while the real estate sector continued to face challenges.
Industry and construction also recorded solid growth of 8.5 per cent, contributing 32.8 per cent to the city’s GRDP and 30.6 per cent to overall economic expansion.
Industrial production remained a key highlight, with the Industrial Production Index (IIP) rising 11.1 per cent in the first half of 2026, compared with 8.6 per cent during the same period last year.
The city’s business environment also strengthened, as the number of newly established enterprises increased 15.6 per cent year-on-year, while newly registered capital rose 26.5 per cent.
Foreign direct investment recorded exceptional growth, with inflows exceeding US$6.8 billion during the first six months, representing a 114.2 per cent increase compared to the same period last year. Authorities also approved 888 new foreign-invested projects with combined registered capital of more than US$1.1 billion.
Despite the strong performance, the Statistics Office noted that the city continues to face headwinds from global economic uncertainty, persistently high energy prices, and rising production and logistics costs, which have increased pressure on businesses and overall economic growth.
Inflation also remained elevated, with the average Consumer Price Index (CPI) rising 4.41 per cent during the period. Transport prices recorded the highest increase at 6.19 per cent, followed by food and catering services at 5.78 per cent, and housing and construction materials at 5.22 per cent.
Meanwhile, public investment disbursement remained below target, particularly for major infrastructure projects. As of June 26, approximately VNĐ37.3 trillion (US$1.43 billion) had been disbursed, representing 25.3 per cent of the Government’s annual investment plan.
Ho Chi Minh City has set an ambitious economic growth target of at least 10 per cent for 2026, requiring the economy to expand by more than 11 per cent in the second half of the year to achieve the goal.
To sustain momentum, the Statistics Office recommended accelerating public investment disbursement, stimulating domestic demand and closely monitoring inflationary pressures. It also called for stronger support to businesses through improved access to finance, production facilities, administrative services, raw materials and consumer markets.
The report further emphasized the need to enhance the investment and business environment, promote digital transformation, expand the application of science, technology and innovation, and improve labour productivity to ensure sustainable and high-quality economic growth.
