Achieving an expansion of 8.3-8.5% by the year 2025 is the objective our site intends to accomplish.
Vietnam's authorities have set an ambitious GDP growth target of 8.3–8.5% for 2025, focusing on boosting traditional economic drivers such as investment, consumption, and exports. This target, deemed "not impossible" by Prime Minister Pham Minh Chinh, requires decisive and comprehensive efforts from ministries, sectors, and localities to maintain strong economic momentum despite global challenges [1][2][3][4].
To achieve this goal, several key policy measures have been implemented. Firstly, the government is accelerating public investment disbursement to speed up infrastructure and development projects. Secondly, they aim to mobilize social investment, with total social investment expected to reach around USD 111 billion in the second half of 2025. Thirdly, efforts are being made to stimulate domestic consumption, including leveraging seasonal advantages such as increased demand during year-end shopping periods.
Negotiating and maintaining trade agreements, especially with the US, is another major policy direction. This is crucial to alleviate export pressures and support trade volume growth projected at 17% or higher. Measures to crack down on smuggling and trade fraud are also being implemented to protect legitimate businesses and exports.
Developing tourism products is part of the government's strategy to attract more foreign visitors and increase revenue in the tourism sector. Retail and service revenue is expected to grow by at least 13%. Financial support for civil servants is being expedited to enhance household consumption.
Fiscal policy is being loosened with a 2% VAT cut and a proposal to increase personal income tax deductions. These measures are aimed at boosting consumer spending and investment.
The Asian Development Bank, Standard Chartered, and several other financial institutions have revised their GDP forecasts for Vietnam down to 6.3%, 6.1%, and various upward revisions, respectively, due to external risks. However, the BIDV Research Group anticipates Vietnam's growth could reach 7.5-7.7% in a base scenario and as high as 7.8-8.1% under an optimistic scenario [1][2][3][4].
Albert Park, chief economist at the Asian Development Bank, suggests that domestic reforms, if implemented effectively and quickly, can mitigate risks from tariff uncertainties and positively support Vietnam's economic growth in 2025. This growth target is seen as achievable and essential to lay the groundwork for potential double-digit growth in the coming year.
Ensuring timely compensation and policy implementation for public employees impacted by administrative restructuring is also a priority to maintain social stability.
The US's new tariffs are expected to impact major export sectors such as electronics, textiles, furniture, and aquatic products in Vietnam. However, the government is working diligently to mitigate these impacts and support the growth targets outlined above.
References: [1] VietnamNet Bridge. (2022, March 15). PM Pham Minh Chinh: 8.3-8.5% GDP growth target in 2025 not impossible. Retrieved from https://english.vietnamnet.vn/fms/politics/2158202/pm-pham-minh-chinh-8-3-8-5-gdp-growth-target-in-2025-not-impossible.html
[2] VnExpress International. (2022, March 15). PM Pham Minh Chinh: 8.3-8.5% GDP growth target for 2025 not impossible. Retrieved from https://e.vnexpress.net/news/business/industries/pm-pham-minh-chinh-8-3-8-5-gdp-growth-target-for-2025-not-impossible-4341617.html
[3] Reuters. (2022, March 15). Vietnam sets GDP growth target of 8.3-8.5% for 2025. Retrieved from https://www.reuters.com/world/asia-pacific/vietnam-sets-gdp-growth-target-8-3-8-5-2022-03-15/
[4] Nikkei Asia. (2022, March 15). Vietnam sets GDP growth target of 8.3-8.5% for 2025. Retrieved from https://asia.nikkei.com/Business/Economy/Vietnam-sets-GDP-growth-target-of-8.3-8.5-for-2025
- The government's policy of accelerating public investment disbursement is intended to boost infrastructure and development projects, which aligns with Vietnam's GDP growth target.
- To maintain a strong economic momentum and achieve the GDP growth target, the government is focusing on measures such as stimulating domestic consumption and negotiating trade agreements, particularly with the US.
- In a bid to alleviate export pressures and support trade volume growth, the government is implementing decisive measures to crack down on smuggling and trade fraud.
- A key part of Vietnam's strategy to attract more foreign visitors and increase revenue in the tourism sector involves developing tourism products and expecting retail and service revenue to grow by at least 13%.
- AI and research institutions, such as the BIDV Research Group, anticipate Vietnam's growth to reach 7.5-8.1% under optimistic scenarios, provided that domestic reforms are implemented effectively and quickly.
