Vietnam seeks economic expansion at 8.3-8.5% this year: Prime Minister

Vietnam needs to achieve a GDP growth rate of about 8.3-8.5% this year, creating momentum to reach a double-digit level in the 2026-2030 period, said Prime Minister Pham Minh Chinh.

Chinh made the statement at an online dialogue Wednesday between the government and leaders of localities on economic growth scenarios.

Previously, the National Assembly - the country's legislature and the Government had set the target of "at least 8%" for this year.

"At this conference, the Government announces such specific figures that we need to strive for. There will be a new resolution on assigning targets and managing growth scenarios," the Prime Minister added.

Vietnam's economic growth rate reached 7.52% in the first six months of the year, a record high in the period 2011-2025, the General Statistics Office reported.

The figures for H1 in 2021, 2022, 2023, and 2024 were 5.71%, 7.01%, 3.91%, and 6.64%, respectively.

The economic expansion in Q2 was 7.96%, the second highest in the 2020-2025 period as it was only lower than the 8.56% recorded in Q2/2022.

To achieve an economic expansion of 8.3-8.5% this year, Minister of Finance Nguyen Van Thang said he believes that localities need to achieve growth rates higher than the previous targets, especially the growth drivers such as Hanoi and Ho Chi Minh City (8.5%), Quang Ninh (12.5%), and Thai Nguyen (8%).

These levels are 0.4-1% higher than the targets set out at the beginning of the year. Similarly, state-owned groups, corporations and enterprises need to grow about 0.5% higher than the previous targets, Thang noted.

The society's total disbursed investment capital in the last six months of the year must be about $111 billion, $3 billion higher than the previous scenario. Of this, disbursement of public investment capital must be about $28 billion.

Private domestic investment must be around $60 billion, $3 billion higher than before. Registered FDI capital attraction and disbursed FDI must be $18.5 billion and around $16 billion, respectively. Others sources must be $7 billion, he highlighted.

The State Bank of Vietnam, the country's central bank, will proactively adjust the 2025 credit growth target (about 16%) if necessary, ensuring credit capital for priority industries, sectors, and projects.

The banking industry needs to effectively implement the VND500,000 billion ($19.12 billion) loan package for businesses investing in infrastructure and digital technology, and the credit package for young people under 35 years old to buy social housing.

The Minister of Finance also emphasized solutions to promote consumption, exploit the domestic market, increase exports, develop harmonious trade with other countries, and create new growth drivers.

In a release on July 8, Singapore's bank UOB said it sees the worst of the tariff tensions has past for Vietnam and are factoring in a modest pace of exports growth in 2025.

Vietnam and the U.S. have reached a reciprocal trade framework. On Truth Social, President Trump on July 2 wrote that Vietnam will pay a 20% tariff on any and all goods sent into the United States, and a 40% tariff on any transshipping.

This is down significantly from the 46% in the original reciprocal tariff plan announced on April 2, 2025. In return, U.S. products into Vietnam will enjoy zero tariff.

Accordingly, UOB has revised up its forecast for Vietnam’s GDP growth in 2025 by 0.9% percentage points to 6.9%.

It pegs the growth projections for Q3/2025 and Q4/2025 of around 6.4%.