Focus on achieving growth target of more than 8% this year

Electronic components production at Rhythm Precision Vietnam Co., Ltd., Noi Bai Industrial Park (Soc Son district). Photo: Nguyen Quang

Difficulties and advantages intertwined

First of all, the world economic and market situation is facing many challenges and instabilities, happening very quickly, unpredictably, and even unprecedentedly.

The global economy has not yet recovered strongly. Major economies such as China, the US and the EU are all facing their own challenges, affecting import demand from Vietnam.

Trade conflicts and geopolitical tensions between major countries and regional disputes continue to put pressure on supply chains and production costs.

Fluctuating world commodity prices as oil and raw material prices increase affect input costs of Vietnamese enterprises. In addition, high interest rates in the world and tight monetary policies of major central banks increase borrowing costs, affecting investment capital flows into Vietnam.

Domestically, the high prices of some imported goods have increased the prices of input materials for domestic manufacturing industries, affecting production. Some businesses still face difficulties in accessing credit capital.

According to the General Statistics Office, Vietnam's labor productivity is still low compared to other countries in the region, affecting its competitiveness, autonomy, and participation in international production chains. Logistics infrastructure has not met demand, and the quality and scale of the seaport, road, and warehouse systems are limited, increasing the cost of transporting goods.

On the other hand, the economy also has some advantages that should be exploited to serve growth. That is, the supply chain tends to shift to Vietnam as many foreign enterprises continue to invest in Vietnam due to the stable business environment.

Consumer demand in Asia is increasing, new export markets such as India and the Middle East are offering many opportunities. Effective free trade agreements (FTAs) such as EVFTA and RCEP help Vietnamese businesses benefit from taxes and expand their markets.

In particular, the Government continues to implement flexible fiscal and monetary policies, promote public investment and improve the business environment to help boost economic growth.

Trade promotion programs, promoting the distribution of goods through digital platforms and e-commerce help expand domestic consumption. The digital and technological transformation process is being strongly implemented.

The Government has preferential and competitive policies, creating favorable business conditions to attract large, key national projects, high-tech projects, etc. to attract strategic investors and multinational corporations to invest, set up headquarters and establish research and development centers in Vietnam.

Economic growth prospects

The world economy in 2025 is forecast to still face many risks and challenges. In particular, the US policy of imposing reciprocal tariffs on imported goods will negatively impact the world economy in general and Vietnam in particular, creating major challenges for Vietnam's economic growth.

From a production perspective, the agriculture, forestry and fishery sector is showing a clear growth trend thanks to export momentum, strong application of science and technology and opportunities from FTA agreements.

The industrial sector is forecast to maintain a growth rate of 7-9%, with the main driving force being exports, public investment and technological transformation. The service sector also tends to grow well thanks to the recovery of tourism activities and import and export of goods and services.

The Government has focused on implementing solutions for socio-economic development, promoting growth, controlling inflation, ensuring major balances, and responding quickly to the US's reciprocal tax policy.

Public investment and foreign investment continue to be a strong arm for economic growth. Policies and solutions to promote disbursement of public investment capital as well as strongly attract foreign investment capital are being vigorously implemented by the Government, ministries, branches and localities, which will be an important bridge and stepping stone to promote production, business and export. The Government is determined to implement major programs and projects such as the North-South high-speed railway, nuclear power, and attract "eagles" in the technology sector.

Digital economy, digital transformation and technological innovation are identified as new growth drivers, the foundation for increasing productivity and efficiency of the economy, currently in a booming phase, which will open up opportunities for businesses to access and apply AI technology in production activities to reduce costs, improve labor productivity and increase competitiveness.

The credit growth target of 16% in 2025 is expected to be a big boost for the real estate market. Along with legal policies, it opens up opportunities for the real estate market to overcome difficulties, thereby stimulating the development of the construction industry.

Consumption is supported by VAT reduction policies and domestic trade stimulus policies.

Visa exemption policy for many countries and tourism promotion strategy will help Vietnam develop and attract tourists especially in the upcoming tourist season.

Free trade agreements such as EVFTA, CPTPP, RCEP to expand export markets for Vietnam's key and advantageous products to European, Japanese, Halal markets... reduce dependence on the US; participate deeply and enhance position in the world supply chain.

Proposed solutions for growth

The General Statistics Office has recommended a number of solutions to boost growth in the remaining months of 2025.

On the supply side, we proactively develop green and sustainable agriculture; encourage the application of high technology in production to improve productivity and quality, bringing high agricultural value. Promote restructuring of the agricultural sector, develop in a sustainable and green direction, support the consumption of agricultural products through market connections, promote agricultural exports. Invest in developing rural infrastructure, improve the ability to prevent and combat natural disasters and epidemics.

Increase selective investment attraction in processing and manufacturing industries, support enterprises in technological innovation. Develop supporting industries to reduce dependence on imported raw materials.

Promote technological innovation, support businesses in digital transformation, automate production lines, apply AI and Big Data to improve productivity, production efficiency and supply chain management. Promote green energy conversion, reduce dependence on mining.

Focus on removing legal obstacles for real estate projects. Speed ​​up the progress of key projects, especially large-scale infrastructure projects with spillover effects such as belt roads, highways, and metro lines.

Improve logistics infrastructure, enhance the quality of transportation and warehousing services, and apply technology to facilitate trade activities.

Diversify tourism products, improve the quality of accommodation and food services, and promote Vietnam's culture and landscapes on digital and international platforms to attract domestic and international visitors.

Promote e-commerce, logistics and digital services; support small and medium enterprises to transform their business models to online platforms, reaching customers more effectively. Develop financial services - banking, insurance, financial technology, thereby expanding access to capital for people and businesses.

Increase investment in research and development, develop high-quality human resources. Encourage research and application of science and technology (digital technology, AI, automation, etc.) in production, optimize productivity and control quality.

Connecting the startup and innovation ecosystem between businesses, research institutes, universities and governments; supporting incubation and commercialization of inventions.

Encourage businesses to apply circular economic models, use resources economically, recycle waste, and minimize environmental impacts. Strengthen pollution control, restore natural ecosystems and biodiversity; focus on developing economic sectors associated with natural resource conservation.

On the demand side, the General Statistics Office recommends accelerating and controlling the progress of public investment disbursement. Improving the investment environment, reducing administrative procedures to attract more FDI. Encouraging investment in high-tech and green industries for sustainable development.

Quickly negotiate with the US government to reduce taxes on imported goods from Vietnam, take advantage of free trade agreements such as EVFTA, CPTPP, RCEP to expand the market and reduce dependence on the US.

Promoting official trade instead of unofficial trade will help reduce the risk of trade disruption and balance import-export; promote trade with focus, key points, connect the export business ecosystem with international e-commerce platforms; promote domestic consumption.

Expand the scope of tax reduction to stimulate consumption, especially for essential goods and highly diffused goods.

Raising people's real income through policies on wages, social insurance and social security, helping to increase spending capacity and stimulate domestic consumption.

According to expert Nguyen Bich Lam, implemented public investment capital will be an important growth driver for Vietnam in 2025. Total public investment capital in 2025 is VND825.9 trillion, if 95% is disbursed, GDP will increase by 1.07 percentage points. If 100% of the total capital is disbursed, GDP will increase by 1.4 percentage points.

Up to now, most regional and international economic organizations have forecast that Vietnam's economy will have good growth prospects in the following quarters of 2025.

Currently, each province and city is racing for growth, concentrating efforts and exploiting maximum potential and advantages to create growth and thereby contribute maximally to GDP.

Source: https://hanoimoi.vn/tap-trung-dat-muc-tieu-tang-truong-hon-8-trong-nam-nay-699150.html