Vietnam Sets Ambitious Economic Growth Target of 8.5% for 2025, Eyes Double-Digit GDP in 2026
Hanoi, The Gulf Observer: The Government of Vietnam has raised its economic growth target for 2025 to between 8.3% and 8.5%, up from the previously set 8%. The revised target was announced in Resolution 226, issued on August 5, marking a strategic shift to accelerate economic momentum and pave the way for double-digit GDP growth in 2026.
Replacing February’s Resolution 25, this new policy introduces a cross-sectoral agenda to bolster investment, enhance infrastructure, reform credit systems, expand exports, and promote emerging economic sectors such as digital transformation and green industries.
Key Economic Targets and Reforms
Vietnam aims for:
- GDP growth of 8.3% to 8.5%
- Inflation below 4.5%
- A 12% increase in total social investment
- Over VND 2.8 quadrillion (US$106 billion) mobilized in the second half of 2025
The State Bank of Vietnam will manage monetary policy flexibly to stabilize interest rates, regulate the foreign exchange market, and direct credit toward key sectors including exports, consumption, innovation, and digital technologies.
The resolution mandates 100% disbursement of the 2025 public investment plan, utilizing surplus revenues from 2024. Infrastructure priorities include the completion of the eastern North–South Expressway, construction of 1,700 km of coastal roads, and progress on major railways such as the Lào Cai–Hanoi–Hải Phòng and North–South high-speed rail.
Fiscal Expansion and Social Welfare
The Ministry of Finance will adopt an expansive fiscal policy, targeting at least 25% growth in State budget revenues. Simultaneously, ministries must reduce regular expenditures by 10% in the last seven months of the year to boost funding for social programs.
Social targets include:
- Elimination of substandard housing for war veterans and martyrs’ families by July 27
- Eradication of all makeshift housing by August 31
- Ensuring no shortage of classrooms for the 2025–2026 academic year
- Construction of boarding schools in mountainous, border, and island regions
Stimulating Consumption and Tourism
To boost domestic demand, the Ministry of Industry and Trade will:
- Promote digital commerce to reach 25% e-commerce growth
- Support Vietnamese brands under campaigns like Vietnamese Excellence and Proudly Made in Vietnam
- Expand domestic retail networks
- Ensure price stability and crack down on counterfeit goods, hoarding, and smuggling
The government targets 25 million international tourists and 150 million domestic tourists in 2025, and will develop high-quality tourism products integrated with OCOP (One Commune One Product) goods. Visa procedures will also be streamlined.
Global Trade and FTAs
Vietnam will:
- Advance trade talks with the US
- Finalize and sign new FTAs with Middle Eastern, Indian, African, and Latin American regions
- Upgrade the ASEAN Trade in Goods Agreement
The resolution aims to remove regulatory bottlenecks affecting exporters and simplify customs to reduce clearance times—especially for perishable agricultural and forestry goods.
Emerging Growth Pillars
Vietnam’s future economic strategy is anchored in:
- Science and Technology
- Digital Innovation
- Skilled Workforce Development
- Global Economic Integration
The government will support the digital economy, green economy, AI, big data, and cloud computing while modernizing education and healthcare systems. The Ministry of Finance is also tasked with elevating Vietnam’s stock market to emerging status and developing international financial hubs and economic zones.
Under Directive 20, major cities including Hanoi and Ho Chi Minh City must enact urgent measures to combat environmental pollution, support green transport, and promote sustainable mobility investments.
With this sweeping resolution, Vietnam signals its strong intent to emerge as a resilient, modernized, and globally competitive economy in the coming years.
