Vietnam’s economy on track for record first-half growth

Vietnam’s economy on track for record first-half growth

At the first government's monthly review meeting held since the recent administrative merger, Minister of Finance Nguyen Van Thang forecast Vietnam’s economy could see its strongest first-half growth since 2008, with GDP estimated to rise by 7.3 per cent.

Minister of Finance Nguyen Van Thang. Source: VGP

At the conference, Minister Thang noted that the economy is gaining strong traction, with several production, business, and revenue indicators showing marked improvement over previous months and quarters, with GDP growing by 7.67 per cent in the second quarter alone.

In addition to growth, other indicators were also positive. Specifically, the processing and manufacturing industry increased by 10 per cent in the first half, meeting targets, and being one of the few years with double-digit growth since 2011. Exports increased by 14.4 per cent, with an estimated trade surplus of $7.63 billion. Total retail sales of goods and consumer service revenue increased by 9.3 per cent.

In the first half of the year, total registered foreign investment exceeded $21.5 billion, up 32.6 per cent on year, the highest since 2009. The number of newly established and re-operated enterprises was 152,700, 20 per cent more than the number of enterprises withdrawing from the market. In June alone, nearly 24,400 newly registered enterprises, the highest ever, with a total registered capital of nearly VND177 trillion ($7.08 billion).

Minister Thang said, "In the first half of 2025, Vietnam made efforts, responded promptly and effectively to the uncertainties in the world, thereby achieving high growth despite the direction of the world economic downturn."

Vietnam and the United States reached consensus on the Joint Statement for a Reciprocal Trade Agreement on July 2. In a phone call the same day, General Secretary To Lam and US President Donald Trump reaffirmed the comprehensive strategic partnership between the two nations and discussed ways to deepen cooperation across multiple areas, with a particular focus on high-tech and scientific collaboration.

"This is an important result in negotiations, creating trust and expectations for businesses," said Thang.

The minister also noted that the economy is expected to face significant challenges ahead, particularly in meeting the 2025 growth target. Macroeconomic pressures remain high, especially in managing exchange rates and interest rates.

He recommended that ministries and governmental agencies closely follow government activities to provide timely guidance and resolve emerging issues efficiently. He also urged the State Bank of Vietnam to employ appropriate monetary policy tools, particularly in managing interest and exchange rates, to support business activity, ensure sufficient capital for the economy, and maintain stability in the monetary and foreign exchange markets.

The Ministry of Finance will increase revenue management, striving for a 15 per cent increase in budget revenue in 2025 compared to initial estimates, as well as saving an additional 10 per cent of the regular expenditure estimate in the last months of the year. Authorities at all levels should closely monitor price fluctuations of essential goods, promptly provide appropriate solutions to manage and control prices, ensure market stability, and prevent speculation and price manipulation.

Minister Thang went on to describe the recent administrative restructuring in Vietnam as a significant step forward in modernising the administrative system and enhancing the institutional framework and organisation of the political apparatus. The two-tier local government structure was implemented on July 1, reducing the number of provincial-level administrative units from 63 to 34, comprising 28 provinces and six centrally run cities.

"The trust and pride of individuals and businesses have been strengthened, creating fresh momentum for Vietnam as it enters a new era of development." Thang said.

VIR