Vietnam’s growth will depend on domestic economy’s integration
Vietnam has become one of the standout growth stories of the global economy in recent years. In the third quarter of 2026, real GDP expanded 9.95% year-on-year, the fastest quarter...
Vietnam's economy has been experiencing rapid growth, driven by significant foreign direct investment (FDI) in high-tech manufacturing. In the third quarter of 2026, the country's GDP expanded by 9.95% year-on-year, with the first nine months of 2026 seeing growth of 9.01%. This impressive performance has been recognized internationally, with the World Bank reclassifying Vietnam as an upper-middle-income economy in July 2026.
However, the growth is not evenly distributed across the economy, as domestic firms remain largely confined to low-value-added activities. The reliance on imported inputs for production highlights a disconnect between the FDI-led export sector and the broader economy. To ensure sustainable growth, Vietnam needs to focus on integrating domestic firms into the value chain and strengthening domestic demand.
Brief written by urgent.news from Qatar Tribune Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
