Vietnam’s gross domestic product (GDP) grew by 7.83% in the first quarter of 2026, the government announced Saturday, while warning that rising costs stemming from the war in Iran are posing serious risks to the country’s energy-dependent economy.

The first-quarter figure represents a slight slowdown from the 8.46% growth recorded in the final quarter of 2025, according to the General Statistics Office.

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“Tensions in various regions, particularly the escalation of the military conflict between the United States, Israel, and Iran in the Middle East, have disrupted the crucial maritime route through the Strait of Hormuz, driving up logistics costs and energy prices, especially crude oil,” said Nguyen Thi Huong, director of the General Statistics Office, in a statement.

She added that “geopolitical fluctuations since late February 2026 have heightened concerns about the risk of a return of inflation.”

Vietnam has set an ambitious target of 10% economic growth for the full year. However, that goal is under pressure due to the country’s heavy reliance on fuel from the Persian Gulf, which supplies more than 80% of the oil imported by the Southeast Asian nation.

Despite the challenges, Vietnamese Prime Minister Pham Minh Chinh insisted Saturday on maintaining a “double-digit” growth target, acknowledging the “difficulties and challenges” regarding “energy security.”

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