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Vietnam Sets Higher 2025 Growth Target and Unveils Bold Economic Roadmap

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HANOI – Vietnam has significantly raised its sights for 2025, unveiling a bold economic plan that targets GDP growth between 8.3% and 8.5%, surpassing its earlier 8% goal. The new policy shift, formalised in Resolution 226 issued on August 5, replaces Resolution 25 from February and signals the government’s intent to accelerate economic momentum and set the stage for potential double-digit growth by 2026.

The directive outlines a comprehensive national roadmap, focusing on public investment, infrastructure development, credit policy reforms, and the promotion of domestic consumption and exports. The move comes as part of a broader effort to reenergize the post-pandemic recovery and sharpen Vietnam’s global economic competitiveness.

A More Ambitious Economic Agenda

Resolution 226 calls for ministries, departments, and provincial authorities to immediately begin implementation and provide detailed action plans.

Key targets under the new directive include:

  • GDP growth of 8.3–8.5% in 2025
  • Inflation capped at under 4.5%
  • Social investment to rise by 12%
  • Mobilisation of around VNĐ2.8 quadrillion (US$106 billion) in investment for the second half of the year

To meet these ambitious figures, the State Bank of Vietnam will play a pivotal role, managing monetary policy with a focus on interest rate stability, exchange rate security, and responsible credit growth. Efforts will also be made to lower lending rates, reduce bad debt, and channel financing into both traditional sectors like exports and consumption, and emerging ones like green tech, digital innovation, and climate resilience.

Infrastructure and Energy in Focus

The resolution mandates full disbursement of the 2025 public investment budget, including funds from 2024 revenue surpluses and budgetary savings. Major infrastructure goals include:

  • Completion of the eastern North–South Expressway
  • Delivery of 1,700 km of new coastal roads
  • Groundwork for key railway lines, such as the Lào Cai–Hà Nội–Hải Phòng corridor and the North–South high-speed railway

The energy sector is also a top priority. Authorities are directed to fast-track approval processes for large-scale power projects and address regulatory hurdles in renewable energy, particularly in direct electricity trading and rooftop solar initiatives.

Vietnam’s new strategy underscores its determination to build a resilient, future-ready economy capable of navigating global uncertainties while advancing innovation, sustainability, and inclusive growth.

Strategic FTA Expansion and Future Growth Priorities in Vietnam’s 2025 Roadmap

Vietnam is set to deepen its international trade ties and position itself more competitively in the global market through a targeted expansion of free trade agreements (FTAs). The Ministry of Industry and Trade has been instructed to prioritize key negotiations, including a reciprocal trade deal with the United States and new FTAs with Middle Eastern, Indian, African, and Latin American regions. Simultaneously, efforts are underway to modernize the ASEAN Trade in Goods Agreement, enhancing regional trade integration.

In tandem, the government plans to swiftly address regulatory hurdles that have long obstructed exporters. Export-related red tape—especially challenges raised by industry stakeholders—will be streamlined, while customs and technical inspection procedures are to be simplified to reduce clearance times and logistics costs. Perishable goods like agriculture and forestry products will receive priority processing during peak seasons to prevent losses and delays.

Four Pillars of Vietnam’s Next-Stage Growth

The resolution identifies four key sectors as central to Vietnam’s sustainable and high-tech growth trajectory:

  1. Science and technology
  2. Innovation and digital transformation
  3. A skilled, future-ready workforce
  4. Deeper global economic integration

Concrete steps will include expanding the digital, green, and circular economies, and promoting emerging industries such as artificial intelligence, big data, cloud computing, and the creative and cultural sectors. Health and education systems will also be modernized in line with national development priorities.

Financial Market Reforms and Environmental Commitments

The Ministry of Finance has been tasked with advancing Vietnam’s capital markets by finalizing plans to upgrade the stock market to emerging market status, while developing international financial centres, free trade zones, and border economic zones to attract foreign investment and boost regional trade.

Environmental protection is also a major component of the new directive. Under Directive 20, ministries and major urban centres—especially Hà Nội and Ho Chi Minh City—must urgently tackle pollution, strengthen energy security, and promote green transport infrastructure. New policies will be rolled out to support both individuals and businesses investing in eco-friendly mobility and sustainable urban solutions.

Together, these strategic reforms aim to transform Vietnam into a high-performing, innovation-led economy, well-positioned for long-term, inclusive, and environmentally sustainable growth.

Enhancing Efficiency in Two-Tier Local Governance

A cornerstone of Vietnam’s newly unveiled economic strategy lies in overhauling and strengthening its two-tier local government system to ensure more effective and responsive governance.

As part of this reform, all ministries and provincial authorities are directed to finalize structural adjustments in accordance with Resolution 18, accelerate digital transformation efforts in local administrations, and foster a public service workforce that is not only technically competent but also ethical and closely connected to citizens.

Additionally, the government emphasizes the importance of securing timely funding for the implementation of Decree 178 and Decree 67, both of which pertain to personnel management and institutional restructuring at the local level.

To ensure a coordinated and results-oriented approach, all ministries, agencies, and provinces are mandated to submit comprehensive growth projections for the remainder of 2025 by August 15. These submissions must detail sector-specific targets, actionable plans, and forecast models rooted in Gross Regional Domestic Product (GRDP) estimates, resource mobilization capabilities, and regional growth potential.

Resolution 226 signals a bold pivot in Vietnam’s economic governance. It reflects the Government’s dual commitment to maintaining macroeconomic stability while fully leveraging all policy instruments to stimulate domestic production, attract foreign and private investment, and prepare the national economy to thrive in the next global growth cycle.

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