VINACHEM

To achieve a GDP growth target of at least 8% in 2025, the processing and manufacturing sector must surge by a minimum of 9.7%.

What is the scenario for GDP growth of 8% or higher?

According to the Government’s supplementary proposal on socio-economic development for 2025, achieving GDP growth of 8% or higher will create a solid foundation for reaching double-digit growth from 2026 onward. This goal must be pursued while maintaining macroeconomic stability, controlling inflation, and ensuring balanced economic development. It also requires a harmonious approach that integrates economic growth with social progress, environmental protection, and national security.

Under this growth scenario, the industrial and construction sector is projected to expand by at least 9.5%, including a minimum 9.7% growth in processing and manufacturing. Meanwhile, the services sector is expected to grow by 8.1%, and agriculture, forestry, and fisheries by 3.9%. These sectors will need to grow 0.7-1.3 percentage points faster than in 2024, with industrial and construction activities, particularly processing and manufacturing continuing to be the key drivers of economic expansion.

The proposal outlines six core measures to achieve these targets: enhancing legal and institutional frameworks; unlocking and efficiently utilizing public investment; fostering private investment and industrial development; stimulating consumption and tourism; boosting exports; and accelerating the development of new growth drivers and advanced production forces.

Supporting private investment and the manufacturing sector

To sustain a growth rate of 8% or higher in 2025, the Government is prioritizing private sector investment and the expansion of the processing and manufacturing industry. Key measures include administrative reforms, improving the business environment, swiftly addressing investment-related challenges, and encouraging capital inflows from all economic sectors, especially large state-owned enterprises and major private corporations.

Additionally, the Government plans to amend the Investment Law under the public-private partnership (PPP) model, introduce policies to support the emergence of new production forces, and foster the growth of large-scale national enterprises. State-owned enterprises will be guided toward strategic, high-impact projects that drive economic development. Stronger linkages will be promoted between state-owned enterprises, private businesses, and foreign direct investment (FDI) firms, while inefficient bureaucratic mechanisms and fragmented public investment will be eliminated.

Efforts will also focus on improving the legal framework to mobilize and maximize available resources, particularly from domestic and international investors. Obstacles in the real estate, capital, and corporate bond markets will be tackled to create favorable conditions for upgrading the stock market in 2025 while optimizing access to indirect investment flows and global investment funds.

Credit growth policies will be managed flexibly to ensure timely and effective capital allocation, prioritizing production and business activities, key industries, and traditional growth drivers such as consumption, investment, and exports.

Furthermore, the Government will strengthen task forces dedicated to working with strategic investors, aiming to attract large-scale, high-tech FDI projects. The "green channel" mechanism will be implemented to fast-track investments in high-tech industrial parks and economic zones. Local governments will also receive greater autonomy in approving new industrial park infrastructure projects.

At the same time, authorities will focus on removing bottlenecks in major projects, particularly in renewable energy, infrastructure, and real estate. In the short term, special mechanisms will be introduced to accelerate project implementation in Ho Chi Minh City, Hanoi, Da Nang, and other major localities, unlocking resources for economic growth within 2025.

Planning initiatives will be executed efficiently, ensuring seamless coordination between strategic infrastructure investments and new development corridors. The Government will also push forward with nuclear and offshore wind energy projects while accelerating amendments and the implementation of Power Plan VIII, targeting completion by February 2025.  – Source: VOV