A boost for economic growth

A report by the Statistics Department on the socio-economic situation in the first eight months of 2026 shows that the economy has continued on a positive trajectory. The macroeconomy remained broadly stable, with inflation kept under control while the consumer price index (CPI) rose by an average of 4.45%. Major economic balances were maintained, while production and business activities continued to be promoted.

Production capacity recovers and expands

Notably, the Index of Industrial Production (IIP) increased by 11.9% year on year, the highest eight-month growth rate compared with the same period since 2019, indicating that production capacity is recovering and expanding. Total merchandise import and export turnover reached a new record of 770.14 billion USD. Another record was set in foreign investment attraction, with total registered capital exceeding 40 billion USD, up 55.4% year on year, including several projects investing in high-tech sectors. Disbursed investment capital reached 17.25 billion USD, up 12%.

Public investment continued to play an important role as a driver of growth, with disbursement reaching 49.8% of the annual plan. Tourism staged a strong recovery, with nearly 16 million international visitors arriving in Viet Nam in the first eight months, up 14.5% year on year. The services sector also recorded positive momentum, with total retail sales of goods and consumer service revenue rising 13.3% from the same period in 2025; excluding price factors the figure was 7.6%, compared with 7.5% in the same period of 2025. State budget revenue surpassed 2 quadrillion VND, equivalent to 80% of the annual estimate and up 16% year on year.

Alongside these favourable factors, Deputy Minister of Finance Tran Quoc Phuong said the economy was facing numerous difficulties and challenges, with mounting pressure on macroeconomic management and inflation control in the final months of the year.

For the business community, long-standing difficulties such as access to capital and production premises have yet to be fully resolved, while rising input costs and signs of slower revenue growth are adding to pressure on production and business activities. Business registration data for the first eight months of 2026 released by the Statistics Department showed that an average of 25,800 enterprises were newly established or resumed operations each month nationwide, while 19,700 enterprises withdrew from the market. The “health” of the business sector remains an issue requiring particular attention.

Policy support for year-end growth

A notable feature of economic management in 2026 is the increasingly important role of fiscal policy. Rather than relying heavily on monetary policy to drive growth, as in some previous periods, fiscal policy has become the economy’s main growth driver since the beginning of 2026, built around three major pillars: accelerating public investment disbursement, with total capital exceeding 1.1 quadrillion VND in 2026; unlocking resources that are currently constrained and effectively mobilising social resources for development investment; and continuing to nurture revenue from the business sector through tax and fee exemptions, reductions, and deferrals.

On August 24, 2026, the National Assembly issued Resolution No. 43/2026/QH16 on reductions in personal income tax and corporate income tax for individuals and businesses. Under the resolution, business households and enterprises with annual revenue of no more than 10 billion VND will receive a 30% reduction in personal income tax and corporate income tax for the 2026 and 2027 tax years.

Dr Le Duy Binh, Executive Director of Economica Viet Nam, said that cutting taxes for business households and small enterprises was not only well targeted and timely, but has also helped strengthen businesses’ confidence in the investment environment. The positive aspect of the policy is that it focuses on groups most vulnerable to fluctuations in costs and market conditions, giving businesses additional resources to maintain operations, reinvest, and recover, thereby contributing to overall economic growth.

According to the Ministry of Finance, in the first eight months of 2026, fiscal policies supporting individuals and businesses through tax and fee reductions amounted to more than 158 trillion VND, while tax and fee deferrals totalled around 51 trillion VND. This represents a significant volume of resources injected back into the economy, supporting the production and business sectors as they overcome difficulties and continue to recover and develop.

However, fiscal support can only have a sustainable impact if it is accompanied by reforms to the business environment. Administrative reform is therefore becoming an important link in the strategy to put the economy on a high-growth trajectory. Under Government Resolution No. 258/NQ-CP on key tasks and solutions to accelerate administrative procedure reform and contribute to promoting double-digit growth in 2026-2030, the government has called for substantive and comprehensive reform of administrative procedures, with a focus on maximising the reduction and simplification of administrative procedures and business conditions.

For many years, barriers arising from business conditions have remained a “bottleneck” constraining the dynamism of the private sector.

Dr Nguyen Minh Thao,
Head of the Enterprise Development and Business Environment Division, Institute of Financial and Economic Strategy and Policy, Ministry of Finance

According to Dr Nguyen Minh Thao, Head of the Department for Enterprise Development and Business Environment under the Institute of Strategy and Policy on Economics and Finance, Ministry of Finance, barriers arising from business conditions have for many years remained a “bottleneck” holding back the dynamism of the private sector. Narrowing the list of conditional business sectors would significantly reduce compliance time and costs for investors, while creating a healthier and more equal competitive environment.

Specifically, the combination of fiscal support policies and institutional reform through reducing the number of conditional business sectors can be regarded as a dual boost for the business environment, strengthening confidence and supporting enterprises and business households in their continued development. This policy “support base” is considered an important resource that could provide a major boost to achieving the double-digit growth target in the period ahead.