Many positive signals create momentum for economic growth

The socio-economic picture of the whole country in May and the first 5 months of 2025, recently announced by the General Statistics Office, Ministry of Finance, recorded many positive signals, showing strong recovery and stable growth, especially in the fields of industrial production, trade and investment, FDI attraction and export turnover... increased quite well.

Producing electronic components at Me Tran Vinh Phuc Electrical - Electronic Company Limited. Illustration photo: Danh Lam/VNA

Through the economic picture of the past 5 months, it can be seen that the Government is determined to achieve the growth target of 8% for this year to create momentum for double-digit growth in the coming time.

 

According to the General Statistics Office, in May and the first 5 months of 2025, the Vietnamese economy recorded many positive growth indicators, with a clear improvement trend every month. Accordingly, industrial production continued to maintain its growth momentum. The index of industrial production (IIP) in May increased by 4.3% compared to the previous month and by 9.4% compared to the same period in 2024. In particular, the processing and manufacturing industry increased by 10.8%, contributing significantly to the overall growth.

 

In addition, the purchasing managers' index (PMI) increased from 45.6 points in April to 49.8 points in May, reflecting the recovery of business confidence. Total retail sales of goods and consumer services revenue increased by 10.2% in May; the total increase for the first 5 months was 9.7%. The number of international visitors to Vietnam reached more than 9.2 million, up 21.3% over the same period, affirming the attractiveness of the tourism industry in the recovery process.

 

Disbursement of public investment capital also improved, reaching over 24% of the plan. This is higher in both absolute and relative terms compared to the same period last year.

 

Foreign direct investment (FDI) continues to be a bright spot in the economy. In the first five months of the year, the total newly registered, adjusted and contributed capital for share purchase reached 18.4 billion USD, a record high in 5 years, up 51% over the same period. In particular, realized capital reached 8.9 billion USD, up nearly 8%. Singapore, China and Japan continue to be the leading investors.

 

Imports and exports also maintained a strong growth momentum. Total turnover in the first 5 months reached nearly 356 billion USD, up 15.7%. Exports of goods reached more than 180 billion USD, up 14%; imports increased by 17.5%, bringing the trade balance to a surplus of nearly 4.7 billion USD.

 

In addition, the average CPI for the first 5 months remains within the safe range. Specifically, the CPI in May 2025 increased by 0.16% compared to the previous month, mainly due to the increase in prices of house rent, housing maintenance materials, electricity and eating out. The CPI in May increased by 1.53% compared to December 2024; increased by 3.24% compared to the same period last year. On average, the CPI in the first 5 months of the year increased by 3.21% compared to the same period last year.

Although the economic picture in the first 5 months of the year has many positive points, the economy still faces many difficulties and challenges. In 5 months, the total number of newly established and re-operated enterprises reached more than 111.8 thousand enterprises, an increase of 11.3%. However, the number of enterprises withdrawing from the market is almost the same, with about 111.6 thousand units, an increase of 14.4% over the same period, showing that enterprises are facing many difficulties and challenges.

 

In addition, production and business activities in many fields are still facing difficulties, especially for small and medium enterprises; domestic production costs tend to increase due to high prices of input materials in the world; logistics and transportation costs increase, the USD/VND exchange rate fluctuates in an upward trend; people's income is still low; the real estate market has not improved much; institutions and laws are still entangled and need to be further resolved...

 

Notably, there are still 37/47 ministries and 24/63 localities with public investment disbursement rates lower than the national average, in which many places are below 10%.

 

According to the May 2025 Macroeconomic Report of the Institute of Training and Research, BIDV pointed out that external risks and challenges still exist; that is: geopolitical risks, especially trade and technology wars, increased trade protectionism (especially the US's reciprocal tariff policy, the response of other countries and unpredictable negotiation results) may cause commodity prices to be under increasing pressure, inflation, interest rates may decrease more slowly than expected, thereby creating pressure on inflation, interest rates and exchange rates of Vietnam...

 

Despite the constant challenges and difficulties, the Government remains steadfast in its goal of achieving a growth rate of over 8% as set out in Resolution No. 154/NQ-CP. Accordingly, many new and important tasks set for this year will be focused on with greater determination, greater efforts, and more drastic actions...

 

At the recent regular Government meeting in May, Prime Minister Pham Minh Chinh clearly stated the key tasks and solutions for June and the coming time; in which, it is required to prioritize promoting growth, renewing traditional growth drivers; drastically increasing revenue, saving expenditure, definitely saving 10% of regular expenditure to reserve resources for large projects; promoting new growth drivers such as science and technology, innovation, etc.

At the same time, maintain macroeconomic stability, control inflation, ensure major balances of the economy; operate monetary policy proactively, flexibly, promptly, effectively, harmoniously and synchronously with a reasonable, focused and key expansionary fiscal policy...

 

To maintain macroeconomic stability in the coming time, the Ministry of Finance has requested the State Bank to effectively use management tools to regulate exchange rates and interest rates appropriately, meeting capital needs for the economy; maintain stability in the monetary and foreign exchange markets; and urgently submit to the Government amendments to Decree 24/2012/ND-CP on management of gold trading activities in June 2025.

 

At the same time, the Ministry of Industry and Trade is requested to ensure domestic gasoline supply; prepare plans to supply and regulate electricity sources to ensure electricity supply, especially during the peak hot season; effectively implement the Planning and Implementation Plan of the adjusted Power Plan VIII.

 

Ministries, agencies and localities closely monitor price fluctuations of essential goods under their management, promptly take appropriate solutions to manage and control prices, ensure market stability, and prevent speculation and price manipulation...

 

Along with that, the Ministry of Finance ensures state budget resources to implement major policies and strategies of the Party and State; continues to expand the collection base, strictly manages revenue sources, especially revenue from e-commerce and food services; completes the implementation of electronic invoices generated from cash registers in June 2025.

 

Dr. Le Duy Binh, CEO of Economica Vietnam, said that macroeconomic stability has emerged as a key pillar, helping to protect domestic strength and creating a foundation to maintain sustainable growth. Good inflation control and measures to increase disposable income will help boost people's consumption. However, in order for domestic consumption to become a factor activating aggregate supply, efforts must be made to direct consumption to products produced by domestic enterprises or contributing to high added value.

 

The Institute of Training and Research, BIDV also made recommendations that need to be implemented, which are to effectively implement the policy of institutional breakthrough, streamlining the organization - apparatus, merging provinces, cities, the four pillars, fighting waste, and substantially improving the investment - business environment: resolutely and effectively implementing the Government's Action Program to deploy the "four pillars" according to the four resolutions of the Politburo; resolutely removing institutional difficulties, turning institutional reform into competitive advantages and development resources; promptly promulgating regulations and instructions for new Laws and Resolutions passed by the National Assembly at sessions from the beginning of 2024 to present.

 

In addition, it is necessary to drastically cut and simplify administrative procedures and reduce compliance costs as proposed; allow the replication of the model of "Modern Public Administration Center" to ensure the quality and efficiency of public services when operating a two-level local government; urgently have plans, mechanisms and policies to use and promote the effectiveness of redundant agency headquarters after rearranging the organizational apparatus and administrative boundaries...

 

Source: https://baotintuc.vn/kinh-te/nhieu-tin-hieu-tich-cuc-tao-da-cho-tang-truong-kinh-te-20250611130423375.htm )