Maintaining high economic growth amid mounting global uncertainties is a major challenge for the Government, especially as the country strives to move past its transitional phase and escape the middle-income trap. Sticking to the 8% growth target and growing credit dependence The Government has set an ambitious GDP growth target of 8% or higher for 2025 and has hinted that it would not revise this goal, despite rising external volatility. The U.S. has launched a new wave of trade wars by imposing tariffs on imports from many trading partners, including Vietnam. Although a 90-day negotiation window has temporarily delayed implementation, reverting to previous tariff levels seems unlikely, which could adversely affect Vietnam’s exports and its ability to attract foreign direct investment (FDI). The Government has launched a comprehensive reform program based on four strategic pillars: fostering private sector development; promoting science, technology, and innovation; overhauling law-making and law enforcement; and accelerating international integration. Rapid growth in 2025 is not only expected to bolster public confidence but also lay the groundwork for post-reform acceleration, with the country’s ultimate aim of achieving high-income status by 2045. However, the export and FDI sectors are under pressure, and domestic production faces hurdles—partly due to […]
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