Government is aggressively advancing its ambitious plans as the development phase approaches its end
Vietnam's Economy Shows Resilience Amid Global Challenges
In the midst of a turbulent global environment, Vietnam's domestic landscape continues to show encouraging signs of growth. Prime Minister Pham Minh Chinh, during the Government's regular meeting on August 7, 2025, emphasized Vietnam’s strong and resilient economic status.
The economy is on a robust growth trajectory with controlled inflation, stable macroeconomic balances, and positive development across key sectors of agriculture, industry, and services. Key highlights include:
- GDP growth target: The Government raised the 2025 GDP growth target to between 8.3% and 8.5%, up from the previous 8%, aiming to accelerate momentum towards a double-digit growth rate in 2026.
- Inflation and macroeconomic stability: Inflation remains under control with the consumer price index rising about 3.26% year-on-year, below the Government's ceiling of 4.5%, ensuring macroeconomic stability.
- Investment and credit: Total social investment is targeted to increase by up to 12%. The State Bank of Vietnam is directed to adjust credit growth proactively to support this target, reducing lending interest rates to promote business and livelihoods.
- Trade and exports: Vietnam’s total import-export turnover surpassed USD 500 billion for the first time in 2025, with a trade surplus exceeding USD 10 billion, supported by strong export growth despite global trade uncertainties.
- Public investment: Public investment disbursement has reached the highest level since 2018, helping to maintain economic momentum amid external challenges such as tariffs, geopolitical tensions, and global economic slowdown.
- Challenges and government response: The Prime Minister acknowledged significant global challenges, including reciprocal tariffs, sluggish global growth, and geopolitical conflicts. The Government is accelerating decisive actions across all ministries and provinces to meet socio-economic development goals and maintain stability.
In addition, total import-export turnover in July reached $82.2 billion, a year-on-year increase of 16.8%. Preparations are being made for the start of the 2025-2026 academic year, including the renovation and construction of 100 boarding and semi-boarding schools in border communes.
State budget revenues reached over 80% of the annual estimate, even after major tax reductions and deferrals. Plans are underway to upgrade Vietnam's stock market classification. Realised FDI also rose, exceeding $13.6 billion.
Prime Minister Pham Minh Chinh spoke at a meeting on Thursday and ordered intensified crackdowns on smuggling and counterfeit goods. Lending rates are to be further reduced. Ministries and agencies are required to complete assessments of housing and transportation challenges facing civil servants affected by administrative restructuring by August 15.
The Government is accelerating efforts across all fronts to complete the 2021-2025 development term. The Government is preparing for global shifts, particularly new US tariff policies. A large-scale military parade and patriotic festivities, including fireworks and concerts across 34 provinces and cities, will accompany the national celebration.
Infrastructure projects will be launched or inaugurated to coincide with the 80th anniversaries of the August Revolution and National Day. Investment disbursement remains a top priority. The Government's regular meeting on Thursday was held via teleconference with provincial leaders.
Public healthcare at the grassroots level is set for enhancement. The Government aims for a 25 per cent increase in State revenue over 2025 budget estimates. The two-tier local governance model's smooth implementation is a central focus.
Over the seven-month period, trade topped $514 billion, with a trade surplus of more than $10 billion. Prime Minister Chính outlined a 14-point directive to consolidate gains and overcome systemic obstacles. Foreign investment has surged, with newly registered capital reaching $24.1 billion in the seven months.
Inflation in Vietnam remains under control, with the consumer price index rising 3.26% year-on-year. Major infrastructure projects will be launched or inaugurated to coincide with the 80th anniversaries of the August Revolution and National Day. The campaign to eliminate all makeshift or dilapidated housing is expected to conclude nationwide by the end of August. Land clearance is underway for the high-speed railway project, scheduled to begin construction on December 19, 2025. The State Bank will provide preferential credit to help affected workers access housing. The gold market will be tightly managed.
- Vietnam's government, under Prime Minister Pham Minh Chinh, has set a higher GDP growth target of 8.3% to 8.5% for 2025, aiming to accelerate the economy toward a double-digit growth rate in 2026.
- Despite global trade uncertainties, Vietnam's total import-export turnover surpassed USD 500 billion in 2025, with a trade surplus exceeding USD 10 billion.
- To support economic growth, the State Bank of Vietnam has been directed to adjust credit growth proactively, reducing lending interest rates to promote business and livelihoods.
- The government is focusing on addressing challenges such as tariffs, geopolitical tensions, and a global economic slowdown, while also maintaining stability in the housing sector through a campaign to eliminate all makeshift or dilapidated housing.
- In the sphere of policy and legislation, the government is preparing for global shifts, particularly new US tariff policies, and implementing a two-tier local governance model.
- In the face of rising foreign investment, the government aims for a 25% increase in State revenue over 2025 budget estimates, while also enhancing public healthcare at the grassroots level.
- The government is also taking measures to manage the gold market and provide preferential credit to help affected workers access housing, as part of broader efforts to complete infrastructure projects in time for national celebrations.
