Vietnam Economic News: 29.8 - 05.9.2026
Summary of Vietnam Economic News: 29.8 - 05.9.2026
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Summary of Vietnam Economic News: 29.8 - 05.9.2026 ---
VIETNAM’S ANNUAL INFLATION ACCELERATES IN AUGUST, EXPORTS RISE 26% ON YEAR
Reuters News – 26 August 2026
Vietnam’s annual inflation accelerated to 4.89% in August from 4.45% in July, driven by higher transportation, housing and food and food-services prices, while the trade deficit narrowed to $110 million, according to government data released on Thursday. Exports rose 26% year on year to $54.80 billion, while imports increased 37.9% to $54.91 billion. For the first eight months of the year, exports grew 22.4% to $374.84 billion, while imports climbed 35.3% to $395.30 billion, resulting in a record-high trade deficit of $20.46 billion. Vietnam is targeting economic growth of more than 10% this year as it seeks to strengthen its position as a regional manufacturing hub, though policymakers face growing concerns over rising imports, inflationary pressures and an uncertain global trade environment. The trade outlook has come under greater scrutiny since the United States imposed a 12.5% tariff on Vietnamese goods last month, citing concerns that Vietnam had not effectively prevented exports made with forced labour, an accusation Hanoi has rejected. Despite these external risks, domestic activity remained resilient, with industrial production rising 14.4% year on year in August, broadly in line with July’s 14.5% growth, while retail sales increased 14.9%, up from 14.5% in July. Foreign direct investment inflows reached $17.3 billion in the January-August period, up 12% from a year earlier.
VINFAST-LINKED TAXI FIRM GSM EYES US, EU EXPANSION AHEAD OF HONGKONG IPO
Reuters News – 3 September 2026
Vietnamese electric taxi operator Green and Smart Mobility (GSM), a partner of carmaker VinFast, plans to expand into the United States and Europe ahead of a targeted 2028 initial public offering in Hong Kong, the company said. GSM plans to deploy fleets in the U.S., Sweden and the Netherlands by the end of this year, followed by further European expansion in 2027. The company, owned by VinFast CEO Pham Nhat Vuong and his family, rapidly gained market share in Vietnam after launching in 2023 and operates exclusively with VinFast electric vehicles. GSM said preparations for the Hong Kong IPO will begin this year, though it declined to disclose its fundraising target or valuation. Advisers have previously suggested a valuation of around $20 billion. The company’s expansion relies on a capital-intensive model in which it owns vehicles and employs drivers, unlike rivals such as Grab and Uber, which largely rely on drivers using their own cars. Analysts have warned the strategy carries significant risks, particularly if overseas fleets fail to achieve sufficient utilisation. GSM is shifting toward a hybrid model in Vietnam to reduce costs, while initially using company-owned vehicles and employed drivers in the U.S. and Europe before moving toward a platform model.
VIETNAM, MYANMAR AGREE TO DEEPEN DEFENCE TIES DURING MIN AUNG HLAING VISIT
Reuters News – 5 September 2026
Vietnam and Myanmar agreed on Saturday to deepen defence and security cooperation, elevating the sector as a pillar of bilateral ties as Vietnamese leader To Lam hosted Myanmar President Min Aung Hlaing in Hanoi. The two sides agreed to expand military training, young officer exchanges, search-and-rescue operations and disaster response, while strengthening information sharing and coordination against crime. Both sides also pledged not to allow individuals or organisations to use either country’s territory for activities against the other. During Min Aung Hlaing’s first official visit to Vietnam as president, the leaders agreed to strengthen political trust through more high-level exchanges and existing bilateral mechanisms. They also committed to expanding economic, trade and investment ties in areas including high-tech agriculture, food processing, telecommunications, information technology, digital transformation, energy and transport infrastructure. The two countries further agreed to coordinate more closely within ASEAN and Mekong subregional frameworks, while reaffirming support for peace, stability and freedom of navigation and overflight in the South China Sea. Min Aung Hlaing’s visits on Friday to VinFast’s electric vehicle factory and telecoms group Viettel highlighted Myanmar’s interest in cooperation with Vietnam in technology, telecommunications and industrial development.