Vietnam government aims for 8% economic expansion in 2025

The Vietnamese government seeks to achieve an 8% GDP growth for 2025, with innovations to growth drivers as a focus.

The National Assembly, the country’s legislature, in a resolution released on November 12 assigned the government to work for a GDP growth rate of 6.5-7% next year. But it also asked for efforts to achieve 7-7.5%

"The mission set by National Assembly is above 7%. But the government will strive for about 8%. This will create momentum for a double-digit growth in the period 2026-2030," Prime Minister Pham Minh Chinh told a conference on Sunday in Hanoi.

“Vietnam prioritizes promoting growth on the basis of maintaining macroeconomic stability, controlling inflation, ensuring key balances, and achieving high surpluses,” he noted.

Vietnam aims to achieve an average GDP per capita of about $4,900 next year, an average consumer price index (CPI) hike of about 4.5%, budget overspending equivalent to 3.8% of GDP, and public debt equalling 35-38% of GDP.

Cabinet leaders also set a goal of completing at least 3,000 km of expressways (by the end of 2025), basically completing the Long Thanh International Airport project, and eliminating temporary houses and dilapidated houses across the country.

These factors, according to the Prime Minister, will create a foundation for the country to “enter a new era and rise as a rich, strong and prosperous nation”.

To achieve this goal, the country’s traditional growth drivers, including investment, consumption and export, will continue to be strengthened and renewed.

Disbursement of public investment capital, especially key national projects, will be accelerated from the beginning of the year.

The North-South Expressway’s eastern section project and a number of others in need will be prioritized when it comes to utilizing the source of state budget revenue expansion in 2024.

The government said there needs to be an effective mechanism to selectively attract foreign investment, especially high-tech projects and emerging sectors such as semiconductor chips, artificial intelligence and energy conversion.

The cabinet will also deploy solutions to stimulate domestic consumption, promote the campaign “Vietnamese people use Vietnamese goods” and e-commerce, while controling supply and prices of essential goods and ensuring food security.

Trade promotion activities will be enhanced by taking advantage of 17 free trade agreements (FTA) and exploiting new markets such as Halal and Africa.

New growth drivers such as digital economy, green economy and sharing economy will be strengthened, according to the Prime Minister.

The goal for monetary policy is to further reduce lending interest rates. Credit growth target for next year will remain above 15%, with capital flows being directed to priority areas, especially production and business.

The Prime Minister stressed that “the economy tends to recover positively, to be better month after month. “GDP scale in 2023 reached $430 billion, ranking 34th in the world. If GDP increases by 7% this year, the scale is estimated at about $470 billion.”

Frederic Neumann, chief Asia economist at HSBC, said at a seminar in mid October that Vietnam is projected to grow 7% in 2024 and 6.5% in 2025, the fastest among ASEAN-6 countries.

In the same month, Standard Chartered Bank revised up its forecast for Vietnam’s 2024 GDP growth to 6.8% from the previous 6%. The bank retains its 2025 forecast at 6.7%.