Vietnam's GDP Growth Reaches Record High In Q1 2025, Confidently Aiming For Top 30

On the morning of May 5, at the opening session of the 9th meeting of the 15th National Assembly, Prime Minister Pham Minh Chinh presented a supplementary report evaluating the results of the implementation of the 2024 Socio-Economic Development Plan and the situation in the first months of the 2025 Plan. The report highlighted impressive bright spots in the Vietnamese economy amidst global challenges, while outlining an ambitious goal: joining the ranks of the world’s top 30 economies.

In the first months of 2025, the world situation continued to evolve in a complex and unpredictable manner. In particular, the widespread announcement by the US of high reciprocal tariff policies negatively impacted global economic growth and seriously threatened global supply chains, trade flows, and international investment. Furthermore, traditional and non-traditional security issues have become increasingly intense and difficult to control.

In that context, the Prime Minister emphasized that Vietnam has calmly, courageously, and proactively responded in a timely, flexible, and appropriate manner, achieving initial positive results. Vietnam was one of the first countries with which the US agreed to negotiate on the new tariff policy. Implementing the direction of the Politburo and General Secretary To Lam, the Government and Prime Minister are closely directing the negotiation delegation and relevant ministries and agencies to urgently finalize plans and are ready to negotiate with the United States in the spirit of “harmonized benefits – shared risks”. The first negotiation session is scheduled to take place on May 7.

Q1 2025 GDP Growth Reaches Record High, Positive Sign For The Economy

Despite common challenges, the Vietnamese economy has recorded impressive growth results. According to the Prime Minister’s report, Vietnam’s GDP growth in Q1 2025 is estimated to reach 6.93%, the highest level compared to the same period in 2020-2025. Notably, many localities achieved double-digit growth rates.

In the first four months of the year, Vietnam’s macroeconomic situation remained largely stable, inflation was well-controlled with the average Consumer Price Index (CPI) at 3.2%, creating room for flexible and effective macroeconomic policy management. Major economic balances were ensured. Exchange rates were stable, lending interest rates continued to decrease, and credit growth achieved positive results.

State budget revenue in the first four months reached over 944 trillion VND, equivalent to 48% of the annual estimate and a 26.3% increase year-on-year. Total import and export turnover in the four months is estimated to reach over 275 billion USD, an increase of 15%, with a trade surplus of over 5 billion USD. Domestic food security was ensured, and 3.4 million tons of rice were exported.

Notably, implemented FDI capital reached over 6.7 billion USD, the highest level in the 2020-2025 period, demonstrating that Vietnam continues to be an attractive destination for international investors.

All Economic Sectors Show Positive Growth, Infrastructure Develops Strongly

The report also indicated positive growth in all three economic sectors. Agricultural production maintained stable development momentum. Industry saw improvements, especially the processing and manufacturing industry, which grew at a double-digit rate (10.1%). Energy supply (electricity, gasoline) for production, business, and consumption activities was ensured. Trade and services continued to develop strongly, with total retail sales of goods and consumer service revenue increasing by nearly 10%. E-commerce witnessed outstanding growth. Tourism was a bright spot with nearly 7.7 million international visitors in the first months of the year, the highest level ever, an increase of 23.8% year-on-year.

In addition, socio-economic infrastructure continued to be developed in a synchronous and modern direction, prioritizing key and important projects such as expressways, high-speed railways, airports, seaports, and education, health, and social infrastructure. A significant highlight was the simultaneous groundbreaking and inauguration of 80 key projects and strategic infrastructure works commemorating the 50th anniversary of the Liberation of Southern Vietnam and National Reunification. Notable projects that have come into operation include Tan Son Nhat Terminal T3 and the main routes of 5 component projects of the North-South Expressway.

The Prime Minister affirmed that these impressive figures are testament to the exceptional efforts of the entire political system, the business community, and the people, while reaffirming Vietnam’s position as an attractive investment destination on the international stage.

500 Billion USD Target And Macroeconomic Stability, Institutional Reform Strategy

Towards the ambitious goal, the Prime Minister’s report set a target of 8% or higher Vietnam’s GDP growth in 2025, bringing the economy’s scale to over 500 billion USD (projected to rank 30th in the world, an increase of 2 positions) and GDP per capita to over 5,000 USD. To achieve these goals, the Government is focusing on two main priorities: macroeconomic stability and institutional reform.

Regarding macroeconomic stability, the Prime Minister requested relevant agencies to closely monitor the international situation, proactively forecast, and implement flexible and timely policy responses, especially concerning the new US tariff policies. Prioritize promoting growth associated with macroeconomic stability, controlling inflation, and ensuring major balances. Strengthen financial and state budget discipline, expand the revenue base, collect correctly, fully, and promptly, and combat tax evasion, especially through electronic tax collection from cash registers, striving to increase state budget revenue by over 15%. The Government is ready to adjust the state budget deficit to 4-4.5% of GDP if necessary, while saving recurrent expenditures to increase development investment and effectively implement policies on tax, fee, and charge exemptions, reductions, and extensions.

Promote the disbursement and effective use of public investment capital with focus and priorities, striving to achieve 100% of the 2025 plan disbursement rate. Effectively utilize the 17 signed Free Trade Agreements (FTAs) and accelerate negotiations and signing of new cooperation frameworks, especially with countries that have recently upgraded diplomatic relations and potential regions.

Regarding institutional reform, the target set for this year is to abolish at least 30% of unnecessary business investment conditions, reduce the processing time and costs of administrative procedures by at least 30%. At the same time, complete public administration service centers, accelerate digitalization, and enhance data integration, sharing, and reuse. The head of the Government emphasized the need for deep and thorough reform of state governance and the refinement of the political system’s organizational model with the spirit of “not doing things halfway, doing them until the end, doing them thoroughly”.