Vietnam’s 2025 GDP growth target set at 6.5-7%

The National Assembly, Vietnam's legislature, on Tuesday assigned the government to work for a GDP growth rate of 6.5-7% next year.

The goal, mentioned in a resolution on the socio-economic development plan for 2025, adopted by the legislative body at its ongoing session, is equivalent to that set by the government for this year, around 7%.

The National Assembly asked for efforts to achieve a growth rate of 7-7.5% and a GDP per capita of about $4,900 next year.

The proportion of the processing-manufacturing industry in the GDP is set at about 24.1%, while the consumer price index (CPI) is targeted to increase by about 4.5%.

Some other targets include an average labor productivity rise of 5.3-5.4%, the ratio of agricultural workers to total workforce at 25-26%, the ratio of trained workers at about 70%, and the unemployment rate in urban areas at less than 4%.

The main targets in the 2025 socio-economic development plan were set based on analyses and forecasts of the domestic and international situation, advantages and difficulties next year, along with the orientations, targets, and tasks specified in the socio-economic development plan for 2021-2025, according to the National Assembly Standing Committee.

The parliarment required the government to prioritize promoting economic growth, supporting production and business activities, controlling inflation, and ensuring the major balances of the economy. Monetary and fiscal policies should be operated flexibly and expanded reasonably, with a focus on key areas.

"The cabinet needs to study available rooms in public debt and government debt, and the budget deficit to mobilize additional resources for development," it stated.

In the resolution, the National Assembly asked for stronger and more timely solutions to institutional bottlenecks and shortcomings to speed up public investment disbursement right from the start of 2025, especially for nationally important projects, construction of key works, and national target programmers.

"The government needs to expedite the plan to restructure the system of credit institutions and address bad debts by 2025, especially focusing on handling weak banks," it added.

The parliament asked the executive body to take stronger solutions to remove institutional barriers in order to restore and develop various markets, particularly the gold, bond, and real estate markets.

Regarding electricity supply, the government needs to effectively execute the plan to implement the National Power Development Plan VIII (PDP8), amend the Electricity Law, propose competent authorities restart nuclear power projects, and develop renewable energy, including hydrogen, it said.

According to government data, Vietnam’s GDP grew by a higher-than-expected 7.4% in Q3 despite the devastating impacts of supertyphoon Yagi, resulting in January-September growth of 6.82%.

At a regular cabinet meeting on Saturday, Prime Minister Pham Minh Chinh asked government agencies to strive hard to reach a GDP growth of 7.4-7.6% in Q4/2024, aiming to have a whole-year reading of 7% and above, nearly twice that of world and ASEAN averages.

HSBC and Standard Chartered have lifted their respective GDP growth forecasts for Vietnam to 7% and 6.8% this year. The Singapore-based ASEAN+3 Macroeconomic Research Office (AMRO) has forecast Vietnam to be the fastest-growing ASEAN+3 (10 nation ASEAN plus China - including Hong Kong, Japan and South Korea) economy in 2024 and 2025.