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Industrial production expanding 10.8% in the first six months of 2026.

Vietnam's industrial production expanded 10.8% in the first half of 2026, marking its fastest growth since 2019, according to the National Statistics Office.

The manufacturing and processing sector remained the primary growth engine, posting an 11.4% year-on-year increase.

The strong performance was driven by a rebound in domestic consumption, improving global supply chains and resilient export markets. Several key industries, including metal production, motor vehicle manufacturing and beverage production, recorded double-digit growth, while supporting sectors such as chemicals and construction materials also benefited from increased infrastructure investment.

Foreign direct investment (FDI) continued to underpin the sector's momentum. By the end of June, manufacturing had attracted more than $10.7 billion in newly registered FDI, accounting for nearly 62% of the country's total registered investment. Meanwhile, disbursed FDI exceeded $13 billion, the highest level in five years, indicating that new projects are being implemented at a faster pace.

Rising product consumption also helped reduce inventory levels, suggesting that manufacturers have improved production planning and aligned output more closely with market demand.

Employment in industrial enterprises increased 3.1% from a year earlier, led by foreign-invested companies. Business confidence also remained strong, with most manufacturers expecting production to maintain or further strengthen its growth momentum in the third quarter of 2026.

Reaffirming Việt Nam's goal of developing Gia Binh International Airport into a leading regional air cargo hub, Minister Lương Tam Quang suggested exploring operational cooperation between Yamato and Vietnamese partners once the airport becomes operational.

HÀ NỘI — Minister of Public Security Lương Tam Quang has invited Yamato Holdings, one of Japan's leading logistics groups, to study investment opportunities in warehousing and cargo transport infrastructure at Gia Bình International Airport.

Receiving Nagao Yutaka, Representative Director and Chairman of the Board of Directors of Yamato Holding, in Hà Nội on Monday, Quang welcomed the company's contributions to Việt Nam's socio-economic development since establishing its local subsidiary in 2015.

Reaffirming Việt Nam's goal of developing Gia Bình International Airport into a leading regional air cargo hub, Minister Quang suggested exploring operational cooperation between Yamato and Vietnamese partners once the airport becomes operational.

The minister also welcomed Yamato's planned cooperation with FPT Corporation to establish an artificial intelligence (AI) laboratory in Việt Nam to research and apply AI and big data in supply chain management, transport coordination and the development of specialised logistics services for high-tech industries, particularly the semiconductor sector, which Việt Nam has identified as a strategic priority.

Highlighting Việt Nam's population of 100 million and one of the world's fastest-growing e-commerce markets, which provide enormous potential for the logistics industry, Quang encouraged Yamato to further expand its investment by developing large-scale logistics centres, financial hubs and modern logistics infrastructure in Việt Nam's key economic regions.

He also suggested that the company give priority to recruiting disciplined and highly skilled Vietnamese workers for positions across its global operations.

The minister affirmed that the Ministry of Public Security will continue to support Yamato by ensuring a transparent and favourable investment environment and creating the conditions necessary for the company to operate safely, efficiently and in full compliance with Vietnamese law.

Expressing his appreciation for the meeting, Nagao Yutaka said he is impressed by Việt Nam's development potential and affirmed that the company would continue to study and implement major cooperation projects, contributing to stronger bilateral ties between Việt Nam and Japan.

Vietnam's retail and consumer service sector maintained strong momentum in the first half of 2026, with total retail sales of goods and consumer service revenue rising 12.9% year-on-year, reinforcing domestic consumption as one of the economy's key growth drivers.

The figures were released on July 3 by the National Statistics Office (NSO) under the Ministry of Finance in its socio-economic report for the second quarter and the first six months of 2026.

In June alone, total retail sales of goods and consumer service revenue were estimated at VND665.6 trillion (US$25.31 billion), up 1.1% from the previous month and 14.8% year-on-year.

For the second quarter, the figure reached an estimated VND1,977.6 trillion, representing a 3.4% increase from the first quarter and a 13.9% rise compared to the same period last year.

In the first six months, total retail sales and consumer service revenue amounted to an estimated VND3,889.5 trillion, up 12.9% year-on-year. After excluding price factors, real growth stood at 7.3%, reflecting a solid recovery in domestic purchasing power and consumer demand.

Nguyen Thu Oanh, Director of the NSO's Price and Services Statistics Department, said the trade and service sector continued to play a vital role in supporting economic growth during the first half of the year.

She attributed the positive performance to robust retail activities, a strong recovery in tourism and vibrant passenger and freight transport, all of which contributed to a brighter economic outlook.

Retail sales of goods remained the largest contributor, reaching VND2,941.8 trillion, accounting for 75.6% of total revenue and increasing 12.5% from a year earlier.

Several product categories saw impressive growth, with jewellery and precious metals up 31.3%, petrol products rising 15.3%, timber and construction materials increasing 13.2%, and garments climbing 12.5%.

Among localities, Quang Ninh posted the highest retail growth at 14.1%, followed by Da Nang with 13.9%, Can Tho 12.9%, Hanoi and Hai Phong, both 12.7%, and Ho Chi Minh City 12.1%.

Accommodation and food services generated VND493 trillion in revenue, up 15.6%, supported by booming tourism in major destinations such as Da Nang, Quang Ninh, Khanh Hoa and Hue. Other service activities earned VND404.9 trillion, rising 12.5%.

Travel and tourism services also performed strongly, with revenue reaching VND49.8 trillion, up 15% year-on-year. Khanh Hoa led the growth with a 32.2% increase, followed by Hue at 27.7% and Quang Ninh at 27.1%.

International tourism remained another bright spot. Vietnam welcomed an estimated 12.3 million foreign visitors in the first six months of 2026, a 14.9% increase from a year earlier, thanks to favourable visa policies, expanded tourism promotion campaigns and more diverse tourism products.

Air travel remained the dominant mode of entry, accounting for 10.1 million arrivals, or 82.6% of the total. Meanwhile, arrivals by land surged 37.5% to 1.9 million, reflecting stronger cross-border travel.

Asia remained Vietnam's largest source market with more than 9.06 million visitors. Europe, however, recorded the fastest growth, with arrivals soaring 56.1% year-on-year to nearly 2.1 million.

The strong performance of retail trade and the continued recovery of services, particularly tourism, accommodation and food services, highlight the increasingly important role of domestic consumption in sustaining Vietnam's economic growth in the first half of 2026.