To achieve an economic growth target of over 8% this year, the Government will introduce mechanisms and policies related to taxation and credit to stimulate consumer demand, and promote domestic tourism. Consumption as a growth driver faces challenges Alongside investment and exports, consumption has traditionally been a key driver of Vietnam’s economic growth. This issue is also a concern for Nguyen Manh Hung, a standing member of the National Assembly’s Economic Committee. At the recent ninth extraordinary session of the National Assembly, during a group discussion on the additional plan for socio-economic development in 2025—targeting a growth rate of 8% or higher—Hung remarked: “Exports and investment have continued to grow relatively well year after year, but domestic consumption is facing challenges.” To surpass 8% growth, the Government plans to ramp up public investment, accepting a fiscal deficit up to 4-4.5% of GDP and an increase in the consumer price index (CPI) to 4.5-5%. respectively. “Simply put, if prices rise, people will only spend more if they have higher incomes or more job opportunities. However, several factors are currently affecting this,” Hung noted. The first factor is the ongoing restructuring and streamlining of the public sector, which is impacting around 100,000 […]
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