PM Lê Minh Hưng Urges Faster Reforms, Investment to Achieve Vietnam’s 2026 Growth Targets
Hanoi, The Gulf Observer: Vietnamese Prime Minister Lê Minh Hưng has called for accelerated economic reforms, investment and policy measures as the Government seeks to achieve its ambitious 2026 growth targets with only a few months remaining in the year.
“Now is the time to accelerate and make breakthroughs with the highest determination,” Hưng said while chairing a regular Government meeting in Hà Nội, highlighting strong performance in trade, foreign investment and industrial production during the first eight months of the year.
Vietnam’s total import and export turnover reached US$770.1 billion in the January-August period, marking a 28.7 percent year-on-year increase. Exports rose 22.4 percent to an estimated $374.8 billion, the highest growth rate since 2021, while imports increased 35.3 percent to $395.3 billion.
The country recorded a trade deficit of $120 million in August, significantly lower than the $3.6 billion deficit recorded in July.
Foreign direct investment remained an important contributor to economic growth. Registered foreign investment reached a record $40.6 billion in the first eight months, up 55.4 percent from the same period last year, while disbursed FDI increased 12 percent to $17.3 billion.
Industrial production also maintained strong momentum, expanding 14.4 percent year-on-year in August. The industrial production index increased by nearly 12 percent during the first eight months, while manufacturing and processing industries grew an estimated 12.5 percent.
Vietnam’s tourism sector continued its recovery and expansion, with nearly 16 million international visitors recorded in the first eight months, representing a 14.4 percent increase year-on-year.
State budget revenues reached VNĐ2.03 quadrillion during January-August, equivalent to 80 percent of the annual target, while public investment disbursement amounted to nearly VNĐ510 trillion, or 49.8 percent of the yearly plan.
The Government said macroeconomic stability had been maintained and major economic balances remained broadly secure. It also reported progress in resolving long-standing projects and investment bottlenecks, with 2,684 of 4,899 stalled projects fully addressed by the end of August. These projects covered more than 102,000 hectares and involved total investment exceeding VNĐ2 quadrillion.
According to the Government report, the International Monetary Fund raised its forecast for Vietnam’s economic growth in 2026 to 8.2 percent in August, compared with 7.1 percent in its April projection.
Focus on exports, investment and public spending
Despite the positive economic indicators, Prime Minister Hưng warned of continued challenges related to economic management, production and business activity, public investment disbursement, exports, financial markets and the livelihoods of certain segments of the population.
He called for monthly and quarterly reviews of growth scenarios and urged authorities to identify and remove bottlenecks, particularly in sectors and localities with strong growth potential.
The Government is pursuing a double-digit growth target while maintaining its objective of keeping inflation under control.
The Ministry of Finance was instructed to accelerate public investment disbursement with the aim of completing 100 percent of the assigned plan. It was also directed to strengthen capital markets, corporate bonds and the stock market to provide businesses with financing alternatives to bank credit.
The State Bank of Vietnam was tasked with maintaining flexible monetary policy, coordinating closely with fiscal policy, directing credit towards priority sectors and major projects, and working to reduce lending rates while maintaining stable liquidity.
The Government also plans to increase exports while containing the trade deficit. The Ministry of Industry and Trade was instructed to identify declining export categories and products contributing significantly to trade deficits, while expanding trade promotion activities in Halal markets, Latin America and Africa.
Greater attention will be given to export orders for products with strong international demand, including electronics, machinery, agricultural goods and aquatic products.
Infrastructure development, strategic technologies, digital transformation and social housing will also remain Government priorities. Authorities are implementing 903 social housing projects nationwide, comprising more than 856,000 apartments. More than 300 of these projects, representing over 200,000 apartments, have already been completed.
Government steps up legal and institutional reforms
Prime Minister Hưng also placed strong emphasis on completing the legal framework required to support economic growth and investment.
The Government has submitted 15 laws and five legislative resolutions to the National Assembly, while 44 documents have been issued to implement laws and resolutions already in force. Only one document providing detailed implementation guidance remains outstanding.
Ministries were instructed to complete 27 decrees providing detailed guidance for 14 laws and one resolution approved during the National Assembly’s recent extraordinary session. The Prime Minister also called for preparations for legislation expected to be submitted during the National Assembly’s second session.
He further directed ministries and local authorities to accelerate strategic technology programmes, strengthen data connectivity and resolve obstacles hampering digital transformation.
With the end of 2026 approaching, Prime Minister Hưng urged Government members to demonstrate responsibility, initiative, creativity and flexibility and take decisive action to accomplish the targets and tasks set for the year.
