Prime Minister Pham Minh Chinh addresses the Cabinet meeting to review socio-economic situation in the first two months of 2026, Ha Noi, March 4, 2026 - Photo: VGP/Nhat Bac

The request was made at the Cabinet meeting held on March 4 to review socio-economic performance in the first two months of 2026.

The meeting took place against the backdrop of rapidly evolving global developments in February, including new U.S. tariff policies and escalating military tensions across the Middle East. These developments have disrupted global maritime and air transport, affected supply chains, and driven fluctuations in oil and LNG prices.

At home, Viet Nam celebrated the Lunar New Year in a safe and festive atmosphere and quickly resumed socio-economic activities afterward. Preparations were stepped up for the election of deputies to the 16th National Assembly and People's Councils at all levels, alongside efforts to respond proactively to global uncertainties.

The Prime Minister noted that Viet Nam maintained a positive socio-economic trajectory in February and the first two months of 2026, achieving encouraging results across various sectors despite both domestic and external challenges.

However, he also pointed out a number of difficulties, including pressures on macroeconomic stability, inflation, exchange rates and interest rates; volatile gold and silver prices; substantial capital requirements to support the 10 percent growth target; obstacles facing several production and business sectors; and cumbersome administrative procedures.

The Government leader urged the participants to steer discussions on assessing socio-economic performance in the first two months, identifying priority orientations for the coming period, evaluating policy responses to global developments, and proposing appropriate management scenarios to ensure proactive and effective governance.

The meeting also reviewed the implementation of the Resolution of the 14th National Party Congress and other key resolutions, examined socio-economic performance, and addressed major bottlenecks requiring timely solutions.

The Prime Minister called for the formulation of key tasks and solutions for March, the first quarter, and the longer term, including breakthrough measures to attain double-digit growth, accelerate public investment disbursement, mobilize social resources, and promote development across culture, society, environment, national defense, security, and foreign affairs.

The Cabinet meeting

Positive socio-economic indicators in February 

The Government assessed that the country’s socio-economic situation in February and the first two months of the year maintained a strong upward trajectory, with results outperforming the same period last year across most sectors.  

Macroeconomic conditions remained stable, inflation was kept under control, and major economic balances were ensured. The average Consumer Price Index (CPI) in the first two months rose by 3 percent year-on-year. The monetary market and exchange rates were basically stable, while public debt, Government debt and national external debt remained well below statutory ceilings. 

All three economic sectors recorded positive growth. The Index of Industrial Production (IIP) rose by 10 percent in the first two months, compared to 7.5 percent in the same period last year. Agricultural production remained stable, meeting increased consumption demand during the Lunar New Year (Tet) holiday.

Domestic consumption continued to improve, with total retail sales of goods and consumer service revenues increasing by 8 percent. Tourism rebounded strongly as Viet Nam welcomed 4.7 million international visitors, up 18 percent year-on-year.

Notably, the S&P Global Viet Nam Manufacturing Purchasing Managers’ Index reached 54.3 points in February, signaling expansion in manufacturing and business activities for eight consecutive months since July 2025. 

State budget revenue in the first two months reached VND 601.3 trillion (US$22.89 billion), equal to 23.8 percent of the annual estimate and up 13.1 percent year-on-year. The increase came despite tax, fee and charge reductions and extensions totaling approximately VND 30.2 trillion, reflecting improved economic activity and effective revenue management.

Total import-export turnover hit US$155.7 billion, marking a 22.2 percent year-on-year increase. Exports rose by 18.3 percent, while imports climbed by 26.3 percent. The trade deficit stood at US$2.98 billion, largely due to increased imports of production materials, which reached US$74.7 billion and accounted for 94.1 percent of total imports—indicating strong demand for inputs to support manufacturing and export activities.

Development investment continued to deliver positive outcomes. Public investment disbursement was estimated at 5.6 percent of the annual plan in the first two months, with the absolute amount rising by VND 10.9 trillion compared to the same period last year.

Foreign direct investment (FDI) inflows also improved. Newly registered FDI totaled over US$3.5 billion, up 61.5 percent year-on-year, while disbursed FDI reached US$3.2 billion, an increase of 8.8 percent. 

Business activity showed renewed dynamism, with nearly 64,500 enterprises entering or re-entering the market in the first two months—up 29.4 percent year-on-year. The surge reflects improving business confidence and supportive policy measures.

Tet gifts were provided to 6.2 million beneficiaries, with total funding exceeding VND 3.7 trillion. Nearly 15,300 tons of rice were distributed to support disadvantaged households. Prior to Tet, Viet Nam Social Security disbursed two months’ pensions in advance to approximately 3.55 million beneficiaries, totaling nearly VND 45 trillion.

The “Quang Trung Campaign” was implemented successfully, repairing nearly 34,800 homes and constructing nearly 1,600 new houses, completing the work 15 days ahead of schedule. This ensured that all households affected by storms and floods had stable accommodation for the Lunar New Year.

Traffic accidents decreased across all three criteria. Meanwhile, 95.5 percent of households reported stable or increased income in February 2026 compared to the previous month and the same period last year.