Vietnam posts fastest GDP growth in nearly 2 decades
The Ministry of Finance estimates GDP growth in the first half was 7.3%, the highest rate since 2008.
Sectors and businesses saw improved growth rates month after month, Minister of Finance Nguyen Van Thang told officials from all 34 provinces and cities at a meeting Thursday following a merger effective July 1 that reduced their number from 63.
Other economic indicators also performed strongly.
Manufacturing and processing grew by 10%, meeting targets and marking one of the few years of double-digit growth since 2011.
Exports were up 14.4%, contributing to an estimated trade surplus of $7.63 billion.
Total retail sales of goods and consumer services rose by 9.3%.
Foreign direct investment hit $21.5 billion, the highest since 2009 and marking a 32.6% year-on-year increase.
The number of newly established businesses reached 152,700, 20% higher than the number exiting the market.
In June nearly 24,400 businesses registered, a record number, with capital of nearly VND177 trillion.
Thang highlighted the government’s proactive efforts, noting that the country achieved high growth « against the tide » of a global economic slowdown.
On Wednesday Vietnam and the U.S. finalized a joint statement on a reciprocal trade agreement framework.
Party General Secretary To Lam, in a phone call with U.S. President Donald Trump, reaffirmed the comprehensive strategic partnership between the two nations and discussed enhancing cooperation, particularly in high-tech fields.
« This is an important outcome of the negotiations, creating confidence and expectations among businesses, » he said.
The country’s new two-tier local government system across the 34 new provinces and cities marks a new phase in administrative development.
« This strengthens the institutional and organizational framework of the political system, » Thang said.
It has boosted public and business confidence, setting the stage for Vietnam’s next era, he said.
But challenges lie ahead, he cautioned.
The 2025 growth target is ambitious amid macroeconomic pressures, particularly in managing exchange rates and interest rates, he pointed out.
He urged all government agencies to closely monitor the two-tier system to ensure smooth operations.
He called on the State Bank of Vietnam to adjust monetary policies, interest rates and exchange rates to support businesses, meet funding requirements and stabilize the financial markets.
The finance ministry plans to intensify revenue collection efforts, targeting a 15% increase this year from projections, and cut regular expenditure by an additional 10%.
By Phuong Dung – VnExpress.net – July 4, 2025