Vietnam's economic growth slowed to 7.83% year-on-year in the first quarter of 2026, down from 8.46% in the previous quarter, as escalating Middle East tensions drove up energy costs and disrupted global trade routes. The National Statistics Office reported this decline, which exceeded the Bloomberg survey median estimate of 7.6% but fell short of General Secretary To Lam's ambitious push for double-digit expansion. Energy costs surged globally, directly impacting Vietnam's manufacturing sector and export competitiveness, while shipping delays through key chokepoints like the Suez Canal added further pressure. This slowdown signals growing vulnerability for Southeast Asia's second-largest economy, complicating efforts to attract foreign investment and maintain robust trade flows.