Vietnam’s Economy Set to Exceed $500 Billion in 2025
Vietnam’s National Assembly has set ambitious targets for the country’s economic growth, adjusting the 2025 GDP target to over 8%, up from the previously set range of 6.5-7%. With these adjustments, the country’s economic scale could surpass $500 billion in the coming years.
In a vote held on February 19, with nearly 97% of delegates in favor, the National Assembly approved the economic development plan, signaling a commitment to pushing GDP growth beyond 8%. If achieved, this would mark a significant leap from 7.09% growth in 2024.
According to the latest projections, Vietnam’s economy is expected to grow by $24 billion, reaching over $500 billion by 2025. This would place Vietnam in the 31st-33rd range globally, showcasing a strong growth trajectory. Additionally, GDP per capita is forecasted to rise above $5,000.
The government has also raised its inflation target to a range of 4.5-5%, up from the earlier projections, to allow room for this expanded economic growth.
Key Economic Drivers and Infrastructure Projects
To achieve this growth, the government plans to accelerate major infrastructure projects, including the Long Thành International Airport, Lạch Huyện Port, and Tan Son Nhat’s T3 terminal. Additionally, the government has prioritized new projects like the Liên Chiểu port in Da Nang and financial centers in HCMC and Da Nang.
In total, approximately 84,300 billion VND of public investment will be allocated, primarily for high-priority infrastructure projects such as expressways and coastal roads. The government may also adjust its budget deficit to 4-4.5% of GDP, higher than the previous 3.8% threshold, to facilitate more investments.
Private Sector’s Role in Vietnam’s Economic Growth
The private sector is expected to contribute $96 billion of the $174 billion total investment in Vietnam’s economy. Despite a slowdown in recent growth rates, private investment has consistently increased by 7-9% annually. To stimulate this sector, the government plans to implement special mechanisms and policies that will focus on large-scale national enterprises.
The state-owned enterprises are also expected to focus on mega projects that will help drive economic growth, creating a deeper integration between the private and public sectors.
Focus on New Growth Drivers: Digital and Green Economies
While traditional economic drivers like investment, consumption, and exports will continue to play key roles, Vietnam also aims to capitalize on emerging economic trends like digital and green economies. The government has emphasized the importance of leveraging cutting-edge technologies, such as AI, semiconductors, and big data, to push for breakthroughs in productivity and innovation.
To achieve this, it will be essential to focus on training highly-skilled labor to meet international standards, while also improving the market readiness for new technologies. Foreign direct investment (FDI) companies are expected to transfer technology, and use more locally sourced components, which will allow Vietnamese companies to deepen their involvement in global value chains.
Vietnam is on a fast track to achieving $500 billion GDP by 2025, positioning itself as a rising economic power in the region. The government’s focus on infrastructure development, private sector growth, and the adoption of new economic drivers like the digital and green economies will be pivotal in maintaining this momentum.
The National Assembly’s bold policy decisions and the government’s proactive strategies are laying the foundation for a prosperous future, making Vietnam a key player in the global economic landscape.
