Vietnam Targets 8 Percent Plus Growth in 2025 Amid Global Uncertainty, Aims for Long-Term Economic Transformation

Hanoi, The Gulf Observer: Vietnam’s economy has demonstrated remarkable resilience and dynamism in the first four months of 2025, maintaining its status as one of the world’s fastest-growing economies despite rising global uncertainty.

Backed by strong policy reforms, active diplomacy, and solid economic performance, the Vietnamese government has set an ambitious GDP growth target of 8% or more for the year— a goal economists and lawmakers say is achievable if key breakthroughs are implemented swiftly.

Strong Start to 2025

According to the Ministry of Finance, Vietnam recorded notable progress in trade, consumption, and investment. Retail sales rose by 9.9% year-on-year to VNĐ2.28 quadrillion, while tourism revenue jumped 24.5% and hospitality 14.9%. Foreign trade remained vibrant, with import-export turnover reaching $275.18 billion, producing a $5.02 billion trade surplus.

Labour exports also remained strong, with 47,881 Vietnamese workers deployed abroad during the first four months, while social welfare and housing programmes progressed steadily.

These gains came despite U.S. tariff actions, which unsettled global markets. In response, Vietnam launched 11 high-level strategy meetings and engaged in direct diplomacy, including talks between General Secretary Tô Lâm and U.S. President Donald Trump, securing Vietnam’s inclusion in a select group for bilateral tax negotiations—helping preserve investor confidence and macroeconomic stability.

Lawmakers Confident in Growth Prospects

Speaking at the 9th session of the 15th National Assembly, several deputies voiced optimism about Vietnam’s growth momentum. Deputy Hoàng Văn Cường (Hanoi) highlighted the 6.93% Q1 GDP growth, which reflects strength across all sectors, especially agriculture, industry, and services.

However, risks remain. April’s Purchasing Managers’ Index (PMI) fell to 45.6, indicating slowed manufacturing activity, largely tied to global trade tensions. Cường emphasized that future growth hinges on both external negotiations and domestic reforms to drive investment and productivity.

To address investment bottlenecks, Prime Minister Phạm Minh Chính has ordered resolution of 2,212 delayed public investment projects, totaling VNĐ5.9 quadrillion.

Three Strategic Breakthroughs

Economists and lawmakers agree Vietnam’s 8% growth ambition must rest on three core breakthroughs:

Institutional Reform: Implementing Resolution 66-NQ/TW to modernize legal and regulatory systems.
Infrastructure Development: Accelerating key projects like Long Thành International Airport and the North–South High-Speed Railway to enhance regional connectivity.
Human Capital: Building a tech-savvy, innovative workforce, especially in science, technology, and public services.

These pillars are supported by three strategic shifts in policy thinking: efficient public administration, digital and high-tech transformation, and private sector empowerment, especially for start-ups.

Looking Ahead: Double-Digit Ambitions

At a recent national economic conference, experts explored the vision of sustained double-digit growth in the coming decades. Dr. Đặng Xuân Thanh, Vice President of the Vietnam Academy of Social Sciences, argued for a transformative shift to an innovation-driven growth model, warning against complacency in a middle-income trap.

Policy recommendations included:

Raising public investment to 9% of GDP,
Introducing targeted tax incentives,
Prioritizing high-tech sectors, logistics, smart agriculture, and sustainable tourism.

Outlook: Ambition Anchored in Strategy

With global recognition from institutions like the World Bank (6.8%), AMRO (6.6%), and the UN (6.5%), Vietnam’s economic prospects remain robust. But domestic leaders are aiming higher—driven by strategy, diplomacy, and collective resolve.

If reforms, negotiations, and growth strategies are executed effectively, Vietnam is poised not only to surpass its 8% target, but to lay a strong foundation for sustained, high-quality, innovation-led development in the years to come.