Vietnam Economic News: 28.3 - 4.4.2026
Summary of Vietnam Economic News: 28.3 - 4.4.2026
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Summary of Vietnam Economic News: 28.3 - 4.4.2026 ---
VIETNAM'S INFRASTRUCTURE PUSH TO BOOST GROWTH AND DEFICIT, S&P RATINGS
Reuters News– 2 April 2026
Vietnam is expected to remain one of Asia’s fastest-growing economies through 2028—second only to India—driven by strong exports and major infrastructure investments, according to S&P Global Ratings. The government is pursuing ambitious goals, including achieving at least 10% annual growth through 2030 and securing an upgrade to investment-grade sovereign credit status by the end of the decade, supported by around $200 billion in large-scale projects launched last year. While these investments are likely to sustain robust growth, forecast at about 6.7% annually over the next few years, analysts warn they could also lead to larger fiscal deficits and reduced current account surpluses. Vietnam’s growth is expected to be supported by rising global demand for electronics, a key export sector dominated by foreign manufacturers. However, risks remain, including vulnerabilities in the banking sector, regulatory weaknesses, and rising public debt, which was estimated at 33–34% of GDP in 2025. Despite these challenges, Vietnam continues to position itself as a regional growth leader, though maintaining fiscal stability will be critical to achieving its long-term economic and credit rating goals.
VIETNAM Q1 GROWTH SLOWS AS COSTLIER MIDDLE EAST ENERGY TESTS 2026 TARGET
Reuters News – 4 April 2026
Vietnam’s economic growth slowed in the first quarter of 2026 compared to the previous quarter, as rising energy costs linked to the Iran war pushed up inflation and created challenges for meeting its annual growth target. GDP grew 7.83% yearon-year from January to March, down from 8.46% in the previous quarter, while inflation accelerated, with consumer prices rising 4.65% in March, driven largely by higher transport and fuel costs. The country’s heavy reliance on Middle Eastern oil imports - over 80% of supply - has made it particularly vulnerable to disruptions, with gasoline and diesel prices surging sharply. Despite strong export growth and increases in retail sales and foreign investment, rising imports led to a trade deficit, and industrial production growth slowed. Higher fuel prices have also forced airlines to cut operations, while the government has responded with measures such as tax reductions, subsidies, and promoting remote work to curb energy use. Although authorities acknowledge significant economic pressures and risks, including inflation and energy security, the government is maintaining its ambitious 10% growth target, with plans to boost public investment and diversify export markets and supply chains.
VIETNAM REFINERY BOOSTING JET FUEL PRODUCTION
Reuters News – 3 April 2026
Vietnam's Binh Son Refining and Petrochemical said on Friday it is prioritising the production of jet fuel to stabilise the domestic market amid supply disruption. Vietnamese aviation authorities said last week the country's airlines were planning to cut their operations due to fuel shortage, according to state media. Prime Minister Pham Minh Chinh on Sunday told Nghi Son Refinery and Petrochemical LLC, the country's other oil refinery, to reduce its production of petrochemicals to focus on fuels, especially jet fuel. Binh Son said it has been operating the Kerosene Treating Unit (KTU) at 145% of design capacity since April 1. The unit is in charge of producing Jet A-1 fuel, it said. The unit already operated above design capacity in 2025, producing 509,042 metric tons of jet fuel, meeting 30% of domestic demand, Binh Son said.
VIETNAM AIMS TO SHORE UP BATTERED STOCKS WITH STABILISATION FUND AND INFLUENCERS
Reuters News – 2 April 2026
Vietnam is planning a series of measures to stabilise its stock market after sharp declines linked to the Iran war and related economic concerns. Proposals include creating a government-backed stabilisation fund to buy shares during heavy selloffs, offering incentives for corporate share buybacks, narrowing daily trading limits, and even temporarily halting trading during extreme volatility. Authorities also suggested boosting positive sentiment through influencers and tighter media guidance, while increasing margin lending limits and potentially cutting interest rates to support key sectors like real estate. These ideas followed a steep drop in Vietnam’s benchmark index, which fell 6.5% in a single day and 9.3% over March, making it one of Asia’s worstperforming markets. Although the prime minister’s office has asked financial authorities to act on the recommendations, it remains unclear which measures will be implemented. The push to stabilise markets is also tied to Vietnam’s goal of achieving an upgrade to developing market status and maintaining strong economic growth.
VIETNAM BANKS FACE MARGIN PRESSURE AS LIQUIDITY TIGHTENS
Reuters News – 1 April 2026
Fitch Ratings said on Wednesday it expects Vietnam's banking system liquidity to remain tight in the near term due to economic risks and strong competition, which will pressure lending margins and profitability. Deposit growth has lagged loan growth as banks compete for market share, leading to tighter funding conditions, especially for smaller banks, and increasing reliance on the interbank market and bond issuance to bridge funding gaps, it said in a note.