Vietnam's GDP growth target not to be revised down amid US tariff tensions: PM

Prime Minister Pham Minh Chinh on Sunday affirmed the government will not alter its GDP growth target of at least 8% for 2025, while seeking solutions to deal with U.S. tariffs if they are enforced.

Chinh made the statement at a monthly government meeting, three days after President Donald Trump announced he will levy 46% tariffs on imports from Vietnam as part of a new wave of global impositions.

"This an opportunity to make effforts, restructuring the economy, markets, exports, and production; and rise up," the Prime Minister stressed.

He noted that export is an important growth driver that must be enhanced, but it is not the only important. The U.S. is the largest export market, but not the only market.

"We highly respect and resolve the issues of U.S. concern and conduct negotiations with the U.S. in line with the high-level agreement between Party General Secretary To Lam and President Donald Trump.

"We see economic ties with the U.S. as part of our overall landscape of economic relations with countries globally, especially those that have signed free trade agreements with Vietnam, and with a view of international treaties for the sake of national interests, first and foremost."

The Prime Minister added: "The export market landscape needs to be restructured. The quality of products needs to be enhanced so they can penetrate other markets with great potential, such as the Middle East, Eastern Europe, Central Asia, Latin America, India, and ASEAN."

At the meeting, Minister of Finance Nguyen Van Thang said he predicted that the economy will face many big difficulties: "Growth drivers will be severely affected, while macroeconomic stability will face many risks."

"If the U.S. enforces a 46% tax rate on a large scale, exports to this market will be strongly impacted, affecting manufacturing, processing, FDI attraction, private investment, consumption, and domestic employment," he highlighted.

The Prime Minister requested relevant agencies and localities to create favorable conditions for foreign enterprises including U.S. companies; proactively work with associations and large companies to have effective support policies; and proactively respond promptly, fully and transparently to issues of U.S. concern, especially regarding intellectual property and combating fraud of goods origin.

Apart from continuing to perfect the institutions, streamlining the administrative apparatus, and strenthening administrative reform and digital transformation, the Prime Minister requested prioritizing promoting growth, renewing traditional growth drivers (investment, export, consumption), and bolstering new growth drivers.

He asked for acceleration of public investment capital disbursement and focusing on attracting and promptly removing difficulties for large-scale, high-tech FDI projects.

The Ministry of Industry and Trade is requested to lead in promoting the diversification of markets, products and supply chains.

Regarding consumption, the Ministry of Finance will take the lead in urgently developing a consumption stimulus policy package proposal, especially for important items such as cement, steel, and construction materials, for submission to the Prime Minister before April 15, 2025.

The trade ministry shall take the lead in proposing specific solutions to stimulate consumption, promote the campaign "Vietnamese people prioritize using Vietnamese goods", and report to the Prime Minister before April 15, 2025.

The Ministry of Public Security shall take the lead and coordinate with the Ministry of Culture, Sports and Tourism and the Ministry of Foreign Affairs to propose expanding the scope of visa exemption for a number of suitable subjects and countries.

Regarding promoting new growth drivers, the Ministry of Science and Technology shall take the lead in effectively implementing the resolutions on breakthroughs in science and technology development, innovation and national digital transformation.

The Ministry of Finance is assigned to complete a draft resolution for the National Assembly on building regional and international financial centers; and on building legal frameworks for digital assets-digital currencies and national investment funds.

Da Nang authorities are ordered to urgently submit a project to establish the Da Nang Free Trade Zone, while Quang Ninh a similar project to develop the Van Don Economic Zone.

The Prime Minister also requested maintaining macroeconomic stability, controlling inflation, and ensuring major balances of the economy.

Accordingly, the State Bank of Vietnam shall operate monetary policy proactively, flexibly, promptly and effectively, in harmony and synchronous coordination with a reasonable, focused and expansionary fiscal policy.

Credit growth must be reasonable, about 16%, and the central bank needs to continue reducing costs, bringing down lending interest rates, and operating exchange rates proactively, flexibly, promptly, and effectively.

The finance ministry shall promote tax revenue growth; save expenditures; strengthen revenue management, especially from e-commerce and food services; and thoroughly save regular expenditures to focus on investment and development.

The construction ministry shall ensure the completion of 3,000 km of expressways within 2025 by accelerating the progress of projects.

In the night of Saturday, Deputy Prime Minister Ho Duc Phoc departed Hanoi for a working trip to the U.S. and an official visit to Cuba until April 14.

Vietnam's economy expanded 6.93% in the first quarter of the year, the highest growth since 2020, the General Statistics Office reported on Sunday.

The consumer price index (CPI) in the first 3 months increased by 3.22% compared to the same period in 2024.

The government recently raised its 2025 growth target to at least 8% (from 6.5-7%), with a higher inflation expectation of 4.5-5% to create room for monetary policy flexibility.