Maintain growth momentum, control prices to protect workers' lives

PGS-TS Ngô trí Long, Hiệp hội tư vấn Tài chính Việt Nam |

In the first 6 months of 2026, Vietnam's economy maintained positive growth momentum, employment and income improved. However, the average CPI increased by 4.38%, and core inflation increased by 4.12%, showing that price pressure is still present, having a clearer impact on low-income workers and vulnerable groups.

Positive growth, improved employment

The socio-economy in the first 6 months of 2026 recorded many bright spots, GDP increased by 8.18% compared to the same period, and in the second quarter alone increased by 8.39% in the context of the world economy still being uncertain.

Growth momentum came from key sectors: Industry and construction increased by 9.81% (contributing 47.20%), services increased by 8.09% (47.14%), agriculture, forestry and fishery increased by 3.87%, maintaining a stable foundational role.

Industrial production recovered strongly, the industrial production index in the first 6 months increased by 10.8% - the highest level since 2019; especially the processing and manufacturing industry increased by 11.4%.

Total retail sales of goods and consumer service revenue increased by 12.9%, reflecting positive domestic demand. Total social investment capital increased by 12.9%; realized FDI reached 13.03 billion USD, up 11.2%, showing that the confidence of foreign investors continues to be strengthened.

Economic growth has had a positive impact on jobs and income. In the first six months of the year, the labor force aged 15 and over reached 53.7 million people, an increase of 690.7 thousand people; employed labor reached 52.6 million people, an increase of 672.5 thousand people. The average income of workers reached 9 million VND/month, an increase of 717 thousand VND; paid labor reached 10 million VND/month, an increase of 7.3%.

However, the quality of jobs still faces many challenges. The rate of informal employment is 61.9%; youth unemployment in 6 months reached 8.77%; on average, about 25.2 thousand businesses withdraw from the market each month. These figures show that growth has improved livelihoods, but not sustainable enough for all labor groups.

Price pressure and pressure on life

Average CPI in the first 6 months of 2026 increased by 4.38%; Q2 increased by 5.25%; June increased by 4.69% compared to the same period, although down 0.39% compared to the previous month thanks to lower gasoline prices. Core inflation increased by 4.12%.

Price pressure is concentrated in essential groups: Food and catering services increased by 4.79% (impact 1.72 percentage points); housing, electricity, water, fuel and construction materials increased by 6.72% (1.53 percentage points); transportation increased by 5.23% (0.52 percentage points).

For workers, especially workers in industrial parks, CPI is not just a statistical indicator. That is market money, rent, electricity and water money, gasoline money, tuition fees for children and medical expenses. When rent, electricity, food, and fuel prices all increase, the increased part of income is easily eroded. Therefore, it is necessary to look at inflation not only from the perspective of macroeconomic stability, but also from the perspective of protecting purchasing power and the quality of life of workers. This is a policy issue of great significance. If prices increase faster than actual income, domestic demand will weaken; workers must tighten spending; businesses consume more; growth is therefore also less sustainable. Conversely, if prices are well controlled, living costs are kept stable, workers have more confidence, businesses have more markets, and the economy has more motivation.

Recommendations for the second half of the year

First of all, price management must be proactive, flexible and closely coordinated. It is necessary to closely monitor the developments of gasoline, oil, electricity, food, foodstuffs, construction materials, medical and educational services. Adjusting prices of goods managed by the State needs to have a roadmap, avoiding being concentrated at the same time, and not creating price psychological shocks. Second, it is necessary to consider protecting the purchasing power of workers as a focus of management. Localities with many industrial parks must accelerate the development of social housing, worker dormitories, kindergartens, grassroots healthcare, stable markets and public transport. Transparently controlling electricity and water prices in boarding houses is also a practical solution to reduce the pressure of living costs. Third, business support policies need to be linked to retaining jobs. Reducing capital costs, logistics costs, taxes and administrative procedures is necessary, but priority should be given to businesses that maintain labor, retrain workers, innovate technology and participate more deeply in the domestic supply chain. Fourth, wage increases must go hand in hand with increased productivity. The rate of trained workers with degrees and certificates is only 29.7%, still low compared to new development requirements. It is necessary to promote practical vocational training, associated with the needs of businesses in the processing, manufacturing, logistics, modern services, digital transformation and green transformation industries. Fifth, it is necessary to gradually reduce the informal labor sector. When most workers do not have stable contracts, are not fully protected by social insurance and unemployment insurance, the ability to withstand price fluctuations is very low. Expanding social security coverage, protecting digital-based labor, encouraging business households to convert and increasing labor law enforcement is an urgent task.

The first 6 months of 2026 show that the economy continues its growth momentum, but the meaning is only complete when it goes hand in hand with jobs, real income, stable prices and social security for workers. Maintaining workers' purchasing power is also maintaining the demand of the economy, ensuring a sustainable growth foundation.

PGS-TS Ngô trí Long, Hiệp hội tư vấn Tài chính Việt Nam
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