Building a growth scenario
The growth rate of the gross domestic product (GDP) in the first quarter of this year is 6.93%, this is also the highest quarter growth of Vietnam in the past 5 years. In the context of difficulties, the Government and the Prime Minister have made great efforts to achieve the growth goals and determination not to change the goals of this year to reach 8% or more.
In Resolution No. 77/NQ-CP, the Government requires ministries, branches and localities to adhere to the GDP growth target of 8% or more in 2025. In particular, ministries and branches have developed scenarios to respond to international fluctuations, especially the US countervailing tax policy. The Ministry of Finance promptly proposes a plan to support businesses and workers affected by tax policies; submit a draft on extending the reduction of value-added tax (VAT) from July 1, 2025 to the end of 2026.
To achieve the economic growth target for 2025, Politburo member and Prime Minister Pham Minh Chinh has directed ministries, branches and localities to continue implementing the "four strategic ministries", including breakthroughs in science, technology development, innovation and digital transformation; streamlining the apparatus of the political system; developing the private economic sector and strengthening international integration in the new situation.
On that basis, the Government and ministries, branches and localities continue to implement 3 strategic breakthroughs towards perfecting legal institutions, smooth infrastructure, developing human resources and smart national governance.
Under the direction of the head of the Government, the Ministry of Finance has developed a next growth scenario for each industry, each field, allocated to localities and regions. In general, the Ministry of Finance achieved a growth target of about 8.3% in the second quarter, and 8.3% and 8.4% in the third and fourth quarters, respectively.
Synchronously deploy many solutions
To achieve the growth target of 8%, National Assembly delegate Pham Van Hoa (Dong Thap) said that it is necessary to stabilize the macro economy. The State Bank should keep the exchange rate at a reasonable level, avoid causing shock to import and export; maintain low interest rates and expand credit with control, focusing on supporting production, export, processing and high-tech agriculture.
He also emphasized that with more than 5 million individual business households, if supported to convert to official enterprises, this will be a strong force driving GDP. The State needs to have policies on finance, tax, legality, governance training, digitalization and market connectivity to effectively exploit this " Subsessed growth sector".
At the credit capital seminar to promote the private economy, economic expert Dr. Nguyen Dinh Cung - former Director of the Central Institute for Economic Management (CIEM) - commented that the Vietnamese economy wants to grow from 8% in 2025, reaching double digits in the following years, the small and medium-sized enterprise sector must grow at the same level.
The expert's point of view comes from the fact that small and medium enterprises account for about 98% (of which, enterprises only account for about 1.5%) of the total number of private enterprises officially registered in Vietnam. Even in the orientation of the private economy becoming a support for the entire economy, small and medium-sized enterprises, along with about 5 million individual business households, are an extremely necessary pillar.
The task of reducing at least 30% of the time for handling administrative procedures; reducing at least 30% of compliance costs; eliminating at least 30% of unnecessary business conditions... will contribute to creating a more open business environment for businesses, which becomes even more urgent given the unfavorable prospects of the global economy.
According to experts, local functional sectors should also set trade promotion targets for small and medium enterprises, instead of only supporting 50% of the cost for a small number of enterprises capable of going abroad to organize product introduction as at present.
Deputy Minister of Finance Do Thanh Trung said that with the second quarter scenario, the manufacturing and processing industry is expected to increase by about 10.1%. At the same time, many solutions are being implemented to overcome unsatisfied growth targets such as mining, electricity production, gas, etc. And will promote disbursement of public investment and focus on developing tourism and services to take advantage of existing growth space.
