Gross domestic product (GDP) grew 7.83% in the January–March period from the same period a year earlier, below the fourth quarter’s (Q4) 8.46%, the National Statistics Office said in a report.

Vietnam’s government is targeting at least 10% this year for the Southeast Asian economy, but the goal is under pressure, with more than 80% of its crude oil imported from the Middle East, where shipments have been disrupted by the Iran war, now in its sixth week.

Rising fuel prices have forced Vietnamese airlines to scale back operations and prompted the authorities to roll out measures to curb costs, including cutting fuel taxes, subsidising prices through a government-controlled fund and encouraging remote work to reduce consumption.

Growth was up from the 7.05% on-year expansion of Q1 of 2025.

“Exports rose 20.1% in March from a year earlier to US$46.44 billion, while industrial production rose 6.9%,” the report said.

“Consumer prices rose 4.65% on-year in March, driven by a 10.81% surge in transport costs,” the statistics office said.

Fuel prices in Vietnam have surged due to the war, with gasoline prices up 21% and diesel prices rising 84%, according to data from top fuel trader Petrolimex.

Senior officials have sought alternative oil sources from potential suppliers including Gulf states, Japan and South Korea.

Vietnam’s March imports rose 27.8% to US$47.11 billion, leaving a monthly trade deficit of US$670 million.

For Q1, exports rose 19.1% to US$122.93 billion and imports were up 27.0% to US$126.57 billion, for a deficit of US$3.64 billion.