Vietnam's Economic Growth Strategy: Key Takeaways from Prime Minister Pham Minh Chinh's Directives

Strategic Insights -

Prime Minister Pham Minh Chinh has outlined a comprehensive economic growth strategy for Vietnam, focusing on boosting economic growth, controlling inflation, and maintaining macroeconomic stability. Despite positive results in several sectors, the government recognizes that additional efforts are necessary to meet annual targets, particularly through innovative thinking and decisive action.

Key Takeaways:

  • The government aims to achieve GDP growth of 8.3-8.5% and an average CPI increase of below 4.5% for 2025, alongside improvements in the material and spiritual well-being of the people.
  • The State Bank of Vietnam is tasked with closely monitoring domestic and global economic developments, ensuring proactive, flexible, timely, and effective monetary policy management.
  • The central bank must intensify bad debt settlement, enhance credit quality, and ensure safe, healthy credit growth, while strictly controlling non-performing loans.
  • Mechanisms and policies should be developed to implement credit programmes for young people under 35 buying or renting social housing and for businesses investing in infrastructure, technology, innovation, and digital transformation.
  • The Ministry of Finance will lead the implementation of a well-targeted and reasonably expansionary fiscal policy, in close, effective coordination with monetary and macroeconomic policies.
  • Efforts will be accelerated to develop sustainable, stable, and healthy capital, securities, and corporate bond markets to meet medium- and long-term capital needs and reduce dependence on bank credit.
  • The government aims to upgrade Vietnam's stock market from frontier to emerging status and improve the efficiency of state-owned enterprises and credit support mechanisms.
  • Ministries and agencies will advance productivity and quality by accelerating digital transformation, promoting science and technology application, encouraging innovation, reforming administrative procedures, and creating a conducive environment for sustainable, high growth.
  • The Ministry of Agriculture and Environment will urgently implement measures to boost agricultural production, revise planning and production strategies, and diversify products and markets.
  • Efforts will be made to expand exports to key regions, including the Middle East, Latin America, Africa, and particularly within ASEAN.
  • The Ministry of Industry and Trade will enhance production management, stabilize supply and demand, stimulate domestic consumption and tourism, and promote agricultural weeks and trade fairs.
  • The industrial sector will be restructured towards deep, modern development to boost productivity, quality, and competitiveness, while increasing the use of domestic materials.

Statistics:

  • Vietnam's economic growth rate is expected to reach 8.3-8.5% for 2025.
  • The average CPI increase is targeted to be below 4.5% for 2025.
  • The government aims to achieve a budget deficit within the limits approved by the National Assembly.
  • The State Bank of Vietnam will submit a monetary policy management plan for the remainder of 2025 and 2026 by August 30, 2025.

Sources:

  • Official dispatch of Prime Minister Pham Minh Chinh to ministers, heads of ministry-level and Government agencies, and Chairpersons of the People's Committees of provinces and cities.
  • Ministry of Finance, Ministry of Agriculture and Environment, Ministry of Industry and Trade, and Ministry of Construction.