HO CHI MINH CITY POSTS STRONG ECONOMIC GROWTH IN H1 2026

Ho Chi Minh City reported strong economic growth in the first half of 2026, with gross regional domestic product (GRDP) expanding 8.55 percent year on year, according to the city's statistics office.

The service sector remained the largest contributor to Ho Chi Minh City's economy, accounting for 54 percent of the city’s GRDP in the first half of 2026. Photo: Quang Dinh / Tuoi Tre

In the second quarter alone, the city's economy grew 8.53 percent year on year.

The service sector remained the main driver of growth in the first six months, accounting for 54 percent of GRDP and expanding 8.89 percent, while the industrial and construction sector grew 8.5 percent and contributed 32.8 percent of the city's economy.

The city's industrial production index rose 11.1 percent during the period. Manufacturing increased 11.5 percent, while mining expanded 10.8 percent.

Among the city's key industries, pharmaceuticals and chemicals recorded the strongest growth at 20 percent, followed by mechanical engineering at 15.8 percent. The electronics sector, however, declined slightly by 0.6 percent.

Retail sales of goods and consumer services revenue reached an estimated VND967.525 trillion (US$36.8 billion), up 13.2 percent year on year.

Transportation revenue climbed 22.3 percent to VND297.634 trillion ($11.3 billion), while travel services expanded 16.8 percent.

Registered foreign direct investment (FDI) in Ho Chi Minh City reached $6.8 billion in the six-month period, surging 114.2 percent from the same period last year.

During the period, the city licensed 888 new investment projects worth more than $1.1 billion, while 99 existing projects saw their capital rise by more than $3.1 billion.

The city's state budget revenue rose 31.7 percent year on year. As of June 26, public investment disbursement totaled VND37.291 trillion ($1.42 billion), equivalent to 28.9 percent of the city's 2026 plan.

Despite the strong economic growth, inflationary pressure remained.

Ho Chi Minh City's average consumer price index rose 4.41 percent in the first half of 2026, led by increases in the prices of transportation, food and catering services, and housing and construction materials.

Source: Tuổi Trẻ News