Vietnam economy shows strong growth driven by FDI and infrastructure

Vietnam is experiencing robust economic momentum driven by strong manufacturing, rising consumption, and significant foreign direct investment (FDI). As of August 2026, total registered FDI reached $40.63 billion, a 55.4% increase year-on-year, with manufacturing accounting for over 55% of new capital.

Major economic hubs are setting ambitious targets. Ho Chi Minh City aims for over 11% growth in the third quarter, supported by a 167.3% surge in FDI and stable industrial production. Hanoi has also maintained its 11% growth target for 2026, reporting positive trends in services and state budget revenue.

Infrastructure development is acting as a primary catalyst for growth and real estate valuation. Large-scale projects, including the expansion of metro networks in Ho Chi Minh City and major railway and ring road projects, are being prioritized to enhance connectivity. These initiatives are increasingly utilizing public-private partnerships (PPP) and seeking to attract both domestic and international capital to support long-term urban and economic expansion.