Data released on Saturday indicated that Vietnam's economic growth decelerated in the first quarter compared to the previous quarter, as the nation's heavy reliance on crude oil imports from the Middle East exerted pressure on its economic performance.
According to a report from the General Statistics Office of Vietnam, the country's gross domestic product (GDP) increased by 7.83% year-on-year in the January–March period, down from the 8.46% growth recorded in the fourth quarter of last year.
The Vietnamese government has set an annual growth target of at least 10% for the Southeast Asian economy, but this goal is now under strain. More than 80% of Vietnam's crude oil is imported from the Middle East, and ongoing conflicts in Iran, now in their sixth week, have disrupted regional petroleum shipments.
Rising fuel prices have compelled Vietnamese airlines to scale back operations, prompting authorities to implement several cost-control measures. These include reductions in fuel taxes, subsidies for oil prices through a government-controlled fund, and the promotion of remote work to curb energy consumption.
First-quarter growth remained higher than the 7.05% year-on-year expansion seen in the same period of 2025.
The report also showed that export value in March rose by 20.1% year-on-year, reaching $46.44 billion, while industrial production increased by 6.9% compared to the same month last year.
The statistics bureau noted that the consumer price index (CPI) climbed 4.65% year-on-year in March, largely driven by a sharp 10.81% increase in transportation costs.
Data from Petrolimex, Vietnam's largest fuel distributor, revealed that gasoline prices surged by 21% and diesel prices by 84% due to the impact of regional conflicts.
Senior Vietnamese officials have been exploring alternative oil sources from potential suppliers such as Gulf countries, Japan, and South Korea.
In March, Vietnam's import value grew by 27.8% year-on-year to $47.11 billion, resulting in a trade deficit of $670 million for the month.
Over the first quarter, total exports increased by 19.1% year-on-year to $122.93 billion, while imports rose by 27.0% to $126.57 billion, leading to a trade deficit of $3.64 billion.
