Vietnam GDP grows nearly 7% in Q1: Prime Minister

Vietnam's economic growth reached nearly 7% in the first quarter, higher than the 5.66% recorded in Q1/2024, according to Prime Minister Pham Minh Chinh.

"With efforts, we could achieve an economic expansion of over 8% this year," the government leader told the Brazil-Vietnam Economic Forum in Hanoi on Thursday.

The event was attended by Brazilian President Luiz Inácio Lula da Silva, who paid a three-day state visit to Vietnam.

The National Statistics Office is expected to announce the country’s growth data next week, the PM said, reiterating the target of achieving double-digit GDP expansions over the next 5-10 years.

"This is a huge challenge, but it is a mission we must accomplish. Nothing can stop us. Although it is very difficult, it is not an impossible task," the Prime Minister stressed.

Double-digit growths will help Vietnam achieve its goal of becoming a high-income developed country by 2045, he noted, calling for the Brazilian government’s cooperation to realize this goal.

The PM highlighted that Vietnam is focusing on three strategic breakthroughs - institutional reform, infrastructure development, and human resources, with an aim to create a transparent institutional framework, seamless infrastructure, and smart governance.

“Such breakthroughs will help remove bottlenecks in institutions, human resources, and infrastructure, creating a favorable business environment,” he said.

Regarding infrastructure, Vietnam is focusing on developing transportation infrastructure, nuclear power, wind power, solar power, and 5G and 6G infrastructure; and exploring new areas of development such as maritime space, space technology, and underground space, Chinh noted.

"The country is also determined to successfully streamline its administrative apparatus, reorganize the administrative boundaries, and reduce intermediary levels. It wants to make breakthroughs in science and technology, innovation, and national digital transformation; and develop the private sector as a key driver of growth," he added.

Vietnam achieved a GDP growth rate of 7.09% last year. The World Bank in March raised its Vietnam GDP growth forecast for 2025 to 6.8%, from 6.6% in January.

Head of research at UOB, Suan Teck Kin, said in a release on February 25 that his 2025 growth forecast for Vietnam is 7%.

Tim Leelahaphan, senior economist, Vietnam and Thailand, Standard Chartered Bank, predicted Vietnam's economic expansion at 6.7% this year (7.5% in H1 and 6.1% in H2), driven by continued business expansion this year and beyond, with foreign investment playing a key role.

Moody's Ratings stated that Vietnam can reach a real GDP growth of 6.5-7% in 2025, the highest tally in the region.