After achieving 7.09% growth last year, the country needs to view 2025 as a key year to finish the 2020-2025 period on a high note and to lay the foundation for double-digit growth in the upcoming years, Deputy Prime Minister Nguyen Hoa Binh said during a government meeting Wednesday.
The 8-10% growth target is considered high, given that the National Assembly has only tasked the government with a maximum expansion rate of 7%.
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Transport infrastructure in Ho Chi Minh City pictured in December 2024. Photo by VnExpress/Quynh Tran |
Some international organizations have made modest forecast for Vietnam’s growth this year. The International Monetary Fund pegs the rate at 6.1%, while the Asian Development Bank expects the economy to expand 6.6%.
Party General Secretary To Lam said that comprehensive and effective solutions are needed to achieve 8% growth minimum.
He called for institutional reforms, prioritizing market principles in resource mobilization and allocation, and eliminating bureaucratic mechanisms.
“The strength of the people and all economic sectors must be harnessed through an efficient administration, a dynamic and low-cost business environment which aligns with international standards,” he said, adding that these measures would encourage entrepreneurship and wealth creation.
The government must protect lawful property rights, encourage business freedom, and promote technology-driven and innovative business models.
Minister of Planning and Investment Nguyen Chi Dung said that in upcoming years Vietnam needs to achieve annual growth rate of over 10% to become a high-income country by 2045.
The 2025-2030 period is a key phase to lay the foundation for this goal, he added.
The country has yet to achieve 10% annual average growth for over a decade, and analysts have said that maintaining sustainable growth rate is key to push the country toward the high-income goal.
HCMC this year targets a growth rate of at least 10%, while Hanoi wants to achieve the highest growth possible.
HCMC chairman Phan Van Mai petitioned the government for a new policies to mobilize resources from the two major economic regions, the Red River region in the north and the Mekong Delta region in the south.
These regions can contribute over 50% of the country’s GDP, if they are supported by sound policies, he added.
Prime Minister Pham Minh Chinh emphasized the government’s commitment to decentralization, resource allocation, and reducing bureaucratic red tape.
He reiterated the government’s resolve to achieve the 2025 plan under the principles of discipline, responsibility, efficiency, and breakthrough action.
This year the government targets an average Consumer Price Index increase of 4.5%, credit growth exceeding 15%, and state budget revenues rising at least 10% higher than in 2024.
Spending will focus on development while minimizing recurrent expenditures.
Deputy PM Binh said that the main priorities will be reforming institutions, improving governance, and enhancing operational efficiency.
The government aims to establish legal frameworks supporting the growth of financial markets, startups, real estate, and innovation sectors. Special policies and pilot models will be evaluated for potential integration into national laws.
By maximizing resources from both state-owned and private enterprises, the government aims to address challenges in stock markets, real estate, and corporate bonds, ultimately fostering efficient capital allocation.
Vietnam’s ambitious goals hinge on bold reforms, strategic investments, and sustained cooperation between central and local governments. If achieved, these measures could position Vietnam as a leading economy by mid-century.
