Vietnam Aims for Minimum GDP Growth of 8% in 2025, Striving for an Economic Scale of $500 Billion
Vietnam Aims High for 2025 Economy Boost
Vietnam's got its eyes on the prize, targeting a whopping 8% GDP growth by 2025. With an ambitious goal of surpassing $500 billion in economic size, this Southeast Asian powerhouse could catapult itself to a global ranking of 30th—two steps up from its current position [1]. And let's not forget about the cherry on top: reaching a GDP per capita of over $5,000.
But how does Vietnam plan to snatch victory from the jaws of the competition? By pulling out all the stops—from revving up public spending and fiscal policy to strategically balancing trade and injection green policies into the mix.
Money Talks
Public investments are front and center, especially when it comes to shielding against external pressures like shifting U.S. tariffs. The priority sectors? Healthcare, education, innovation capacity, and boosting total factor productivity (TFP)—all factors that stimulate immediate demand while building long-term growth [2]. It's all about walking the tightrope between short-term stimulus and long-term sustainability.
Prime Minister Phạm Minh Chính delivers his speech at the opening session of the 9th session of the 15th National Assembly on Monday morning in Hà Nội.-VNA/VNS Photo
Trade Diversification
Reducing the dependency on any single country is crucial for survival in the global economy. That's why Vietnam is working hard to boost competitiveness in alternative markets and slash trade deficits with countries outside the U.S., such as China [2].
Structural Reforms
Tackling infrastructure gaps is a priority. Fiscal policy is set to support growth by targeting strategic investments in key sectors such as ICT, electricity, and transportation—all key sectors critical to digital economy development and long-term green growth [3]. Accelerating reforms to strengthen regulatory environments in these areas is also on the to-do list.
The opening session of the 9th session of the 15th National Assembly on Monday morning in Hà Nội. - VNA/VNS Photo
Exchange Rate Management
Managing exchange rate fluctuations carefully is essential, with a relatively stable exchange rate expected to remain the norm. Projections show a 4% increase in the USD/VND rate by 2025 [4].
In short, Vietnam's economic strategy is a beautiful dance between short-term stimulus measures and long-term structural reforms aimed at bucking external challenges and securing its place at the top table of global economies.
Notes:[1] Vietnam to target GDP growth of at least 8% by 2025: PM[2] Structural reforms key to Vietnam's long-term growth: IMF[3] Vietnam to focus on fiscal policy to boost growth amid uncertainty[4] Vietnam's monetary policy to focus on maintaining exchange rate stability in 2025
- Vietnam aspires to attain an 8% GDP growth by 2025, aiming to surpass $500 billion in economic size.
- With a vision of reaching a global ranking of 30th and a GDP per capita of over $5,000, Vietnam could elevate its standing.
- To achieve this goal, Vietnam plans to intensify public spending and fiscal policy.
- Healthcare, education, innovation capacity, and total factor productivity (TFP) are the priority sectors for public investments.
- The long-term growth is a focus, balancing short-term stimulus with long-term sustainability.
- Reducing the dependency on any single country is vital for Vietnam's survival in the global economy.
- Vietnam is striving to boost competitiveness in alternative markets and reducing trade deficits outside the U.S., especially with China.
- Tackling infrastructure gaps is a priority, with investments targeting sectors such as ICT, electricity, and transportation.
- Reforms to strengthen regulatory environments in these areas are being accelerated.
- Managing exchange rate fluctuations carefully is essential, with a relatively stable exchange rate projected for 2025.
- Projections indicate a 4% increase in the USD/VND rate by 2025.
- Vietnam's economic strategy involves a delicate balance of short-term stimulus measures and long-term structural reforms.
- These measures aim to address external challenges and secure Vietnam's position among global economies.
- The strategy also includes the injection of green policies into the mix, contributing to long-term green growth alongside digital economy development.
