Vietnam GDP growth hits 7.3% in H1, highest in 17 years: Minister

Vietnam’s GDP is expected to increase by 7.3% in the first half of this year, the highest level since 2008, said Minister of Finance Nguyen Van Thang.

Official data compiled by the General Statistics Office (GSO) is expected to be released on Saturday.

Minister Thang made the statement on Thursday at the first meeting between the government and authorities of provinces and cities after their mergers and the implementation of the two-tier government system (including provincial and communal levels with the district level in between removed) starting from July 1.

The Finance Minister noted that economic growth had achieved significant results, with many economic indicators improving month by month and quarter by quarter.

Notably, the manufacturing and processing sector grew by 10% year-on-year, meeting the set scenario. Exports rose by 14.4%, with trade surplus estimated at $7.63 billion. Total revenue from retail sales of goods and consumer services increased by 9.3%.

In H1, total registered FDI reached over $21.5 billion, up 32.6% year-on-year and the highest since 2009.

The number of newly-established and reactivated enterprises hit 152,700, exceeding the number of those exiting the market by 20%. In June alone, nearly 24,400 new companies were registered, the highest ever, with total registered capital of nearly VND177 trillion ($4.47 billion).

Minister Thang explained that in H1, the entire system made timely and effective efforts to respond to emerging issues, thereby achieving high growth, contrary to the global economic slowdown trend.

On Wednesday, Party chief To Lam and President Donald Trump stated that they welcome the negotiation teams of Vietnam and the U.S. reached the Joint Vietnam-United States Statement on a Fair, Balanced, and Reciprocal Trade Agreement Framework.

"This is a significant result in the negotiations, creating trust and expectations for businesses," the minister remarked.

From Tuesday, the two-tier local government system officially came into operation in 34 provinces and cities nationwide. According to Thang, this marks a new stage of administrative development, improving the institutional and organizational structure of the political system.

He believed that public trust and business confidence have been strengthened, creating new momentum for Vietnam to enter a new era.

However, the Minister admitted that the economy is expected to continue facing many challenges in the coming period. The growth target for 2025 remains difficult to achieve and macroeconomic stability remains under pressure, especially in managing exchange rates and interest rates.

He proposed that ministries and agencies closely monitor the operations of the two-tier government system to provide timely guidance and solutions, ensuring smooth workflow.

The State Bank of Vietnam should manage monetary policy tools, interest rates, and exchange rates appropriately to support business activities, meet capital demands, and maintain stability in the monetary and foreign exchange markets.

The Ministry of Finance aims to enhance revenue management, striving for a 15% increase in the 2025 state budget revenue compared to the estimates, and to save an additional 10% of the remaining regular expenditure for the rest of the year, he said.

Ministries, agencies, and localities are also advised to closely monitor price fluctuations of essential goods and promptly implement appropriate management and control measures to ensure market stability and prevent speculation or price manipulation.