|
Pham Minh Chinh, Prime Minister The year 2025 holds special significance for Vietnam as it marks a pivotal moment to accelerate progress and achieve key milestones in the five-year socioeconomic development plan. 2025 is also a year of numerous significant events: the 95th anniversary of the Party’s foundation, the 50th anniversary of the liberation of the south and national reunification, the 135th anniversary of the birth of President Ho Chi Minh, and the 80th anniversary of the country’s founding. This is a year of congressional activities, culminating in the 14th National Party Congress, marking the start of a new era aimed at advancing towards a prosperous and modern Vietnam as directed by Party General Secretary To Lam. Successfully meeting the objective to become a developing country with modern industry and high average income by 2030, and a developed country with high income by 2045, necessitates concerted efforts, innovative investments, enhanced business, and securing a growth rate of at least 8 percent or more with improved conditions, paving the way for double-digit growth from 2026. Achieving the strategic goals to commemorate the 100th anniversary of the founding of the Party and the country is a challenging yet glorious mission for current and future generations. It is a bridge connecting past, present, and future, essential for Vietnam to escape the middle-income trap and progress into a developed nation. This can be accomplished with innovative thinking, strong determination, significant efforts, effective methods, and flexible organization. The focus should be on leveraging unique potential, exploiting opportunities, and utilizing competitive advantages. Leadership at all levels, businesses, and each Vietnamese citizen must foster unity, daring innovation, and accountability, making actions quantifiable and results measurable. In 2025, the government will prioritize robust economic growth alongside macroeconomic stability, inflation control, and economic balance. The government will enhance predictive analytics and implement fiscal and monetary policies to allocate resources effectively. Attention will be directed to revitalizing traditional growth drivers, like spurring investment, consumption, and exports, and fostering new drivers such as digital transformation, green practices, semiconductor development, and advanced technologies. The government will also concentrate on developing a modern infrastructure system, accelerate critical project construction, integrate expressways with airports and seaports, and expedite high-speed railways and urban railways. It aims to complete 3,000 kilometers of expressways and over 1,000 kilometers of coastal roads by 2025, while boosting digital, urban, cultural, societal, educational, healthcare, and sports infrastructure. Enhancing research and development in earth, sea, and space exploitation is also a priority. Efforts will focus on advancing industrialisation, modernisation, and economic restructuring through innovation and enhanced productivity. Promotion of high-tech agriculture, sectors like aerospace, data science, artificial intelligence, and IoT will be prioritized. Logistics cost reduction and tourism growth will also be emphasized. State-owned enterprises (SOEs) and private sector growth will be fostered, with selective foreign investment encouraged. |
Vietnam’s Victorious Night: ASEAN Cup Triumph
On the night of January 5, Vietnam erupted in joy as its national football team clinched victory against Thailand in the 2024 ASEAN Cup final. Streets in major cities were filled with jubilant supporters holding national flags and banners, celebrating their team’s success.
Among the enthusiastic crowds were US Ambassador to Vietnam Marc E. Knapper and his staff. Watching the match inside a beer hall, he was swept by the celebratory spirit and joined the street festivities alongside the fans.
International Cooperation: A Flourishing Partnership
Vietnam’s recent success on the international stage is mirrored by its flourishing partnerships. Over a decade, the country has inked 17 bilateral and multilateral free trade agreements, establishing itself as a key trading partner across markets, including Europe, the United States, China, Japan, and ASEAN.
This robust foundation has enabled the Vietnamese economy to weather various crises. In 2024, economic growth reached 7.09 percent, with the government aiming for an 8 percent target and a potential 10 percent growth by 2025, fueled by rising global demand and restored domestic consumer confidence, exports, and investments.
Prime Minister’s Commitment to Business and Investment
In discussions with foreign companies, ambassadors, and international leaders, Prime Minister Pham Minh Chinh has reaffirmed the government’s dedication to regulatory reforms that create a level playing field for all businesses.
“Vietnam is committed to safeguarding the legitimate rights and interests of foreign investors under any circumstances,” said PM Chinh. “The government will continue to support businesses to overcome challenges and seize opportunities for sustainable operations in Vietnam on the principle of mutual benefits and shared risks.”
Strategic Breakthroughs: Institutions, Infrastructure, and People
From now until late 2025, a primary focus for the government is on institutional improvement. At the 2024 US-Vietnam Business Summit in Hanoi, PM Chinh articulated Vietnam’s plan to advance its strategic breakthroughs in institutions, infrastructure, and human capital.
“We will establish robust institutions by creating a streamlined, strong, efficient, and effective administration. This will enhance the investment and business environment with principles of openness, transparency, and smart governance, reducing time, compliance costs, and input costs for businesses and investors. It will also boost labour productivity, create new development opportunities, and enhance the competitiveness of goods, businesses, and the economy,” Chinh stated.
Economic Targets and Prospects
By 2025, the government aims to grow the business community to 1.5 million enterprises, expanding to two million by 2030. Currently, more than 900,000 enterprises operate in Vietnam.
In 2024, over 157,200 new businesses were established, registered at $64.45 billion, with nearly 76,200 enterprises resuming operations, increasing the combined total to over 233,400 by 7.1 percent annually. Capital supplementation reached $84.4 billion, up 3.6 percent year-on-year.
By the end of the decade, the government targets an annual economic growth rate of 7.5 to 8.5 percent. Per capita GDP is projected to range from $7,400 to $7,600 by 2030, positioning Vietnam as an upper-middle-income nation with modern industries and a GDP of $780 to $800 billion.
Foreign Investment and Economic Opportunities
The ongoing reforms in Vietnam create significant opportunities for foreign businesses. According to the US Embassy to Vietnam and the American Chamber of Commerce, Vietnam remains a top destination for US investments.
“The US is one of Vietnam’s leading foreign investors, and despite global economic challenges, it remains the country’s primary export market,” said Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi.
Sitkoff highlighted that US companies bring high-quality products and cutting-edge technologies, services, and business practices to Vietnam. “We aim to develop a globally competitive workforce, offer quality jobs, and invest in professional development of Vietnamese staff. High-quality foreign investors not only drive Vietnam’s economy but also nurture the local ecosystem of companies and entrepreneurs,” he emphasized.
US Ambassador Marc E. Knapper highlighted the positive impact of the upgraded comprehensive strategic partnership formed in September 2023. “This partnership upgrade reflects the progress we have made over nearly three decades in areas such as economics, trade and investment, defense, health, climate, energy, education, and security. The elevation sends a powerful message about our shared confidence in the future and each other,” Knapper said.
EU-Vietnam Free Trade Agreement: Fostering EU Investments
Trade between Vietnam and the US reached $134.6 billion in 2024, with the US having registered $12 billion in cumulative investment across 1,420 projects in Vietnam.
Meanwhile, Vietnam’s relationship with the European Union is burgeoning. The EU-Vietnam Free Trade Agreement (EVFTA) has significantly enhanced bilateral economic links.
Julien Guerrier, Ambassador and Head of the European Delegation to Vietnam, praised the progress made under the EVFTA. “The EVFTA has been a catalyst for strengthening the commercial and economic ties between Vietnam and the EU,” Guerrier said.
EU-Vietnam bilateral trade hit $68.8 billion in 2024, with the EU’s total investment stock exceeding $28.3 billion across over 2,450 projects.
Guerrier emphasized the need for continued reforms to realize Vietnam’s full potential. “Simplifying administrative procedures and eliminating complicated licenses and sub-licenses are crucial for optimizing Vietnam’s potential,” he added.
Conclusion
Prime Minister Pham Minh Chinh’s strategic vision and commitments underscore Vietnam’s ambitious plans for 2025 and beyond. As Vietnam celebrates significant anniversaries and participates in major sporting events, the country’s focus remains on economic growth, equitable business environments, and international collaboration.
The government’s emphasis on innovative initiatives, robust infrastructure, and foreign investment signals a promising future. With continued efforts, Vietnam is poised to achieve its ambitious economic targets and secure a prosperous future for its citizens.
Join the conversation and share your thoughts on Vietnam’s economic journey and future prospects. Comment below or subscribe to our newsletter for more insights into global economic developments.
