Speaking at the Government’s regular July meeting on August 7, Thang highlighted the Government’s flexibility, resilience, and decisive actions in navigating multiple difficulties and pressures. These efforts have resulted in broad socio-economic progress, earning the trust and recognition of the public, businesses, and international organisations.

The economy continued its robust growth while maintaining macroeconomic stability, controlling inflation, and balancing key factors. Many important indicators improved compared to both the previous month and the same period last year.

The Consumer Price Index (CPI) rose by 3.26% in the first seven months; credit growth stayed strong with average lending interest rates declining; and the stock market showed lively activity with increased liquidity and capital flows. State budget revenue reached 80.2% of the annual target, up 27.8% year-on-year, while exports outpaced imports, resulting in a trade surplus of approximately US$10.2 billion.

Traditional growth drivers continued to perform strongly. Total registered foreign direct investment (FDI) in the first seven months hit nearly US$24.1 billion, up 27.3% year on year, with disbursed FDI at approximately US$13.6 billion, an 8.4% increase. Retail sales of goods and consumer services grew by 9.3% compared to the same period last year. International tourist arrivals exceeded 12.2 million, marking a 22.5% increase. Several international organisations raised their forecasts for Vietnam’s GDP growth in 2025.

Business and production activities also showed positive signs. Agriculture and services maintained solid growth, while the Index of Industrial Production (IIP) rose 8.5% year on year in July, bringing the seven-month growth to 8.6%. Manufacturing and processing expanded by 10.3%. New orders bounced back, and the Purchasing Managers’ Index (PMI) reached 52.4 points in July, surpassing the 50-point mark for the first time since early Q2.

Business registration improved significantly, with over 174,000 enterprises newly entering or re-entering the market. Additional registered capital injected into the economy exceeded VND3.3 quadrillion, a 93.7% increase year on year. Nearly 536,200 new household businesses were established, up 165%.

However, the Finance Minister also acknowledged ongoing challenges. Meeting the 2025 growth targets remains under considerable pressure, and macroeconomic stability is being tested, especially in managing exchange rates and interest rates. Some projects have been delayed or are progressing slowly, adding pressure for timely completion.

He stressed the importance of monitoring credit growth closely to align with inspection and regulatory efforts. Institutional and legal reforms, though prioritized, continue to face bottlenecks and lag behind development needs. Furthermore, certain segments of the population, particularly workers, still face difficult living conditions.

To address these issues, Minister Thang proposed key tasks and solutions for August and the third quarter, so as to achieve the 8.3-8.5% GDP growth target this year. Priority will be given to accelerating legislative work, ensuring timely and high-quality preparation of reports, proposals, and draft laws, especially those scheduled for the National Assembly’s year-end session.

He stressed the need to ensure the smooth and effective operation of the two-tier local government model following the recent structuring; boost exports and promote balanced, sustainable trade with international partners; and continue improving institutions and legal frameworks, and enhance the business and investment environment.

He also highlighted the need to reinvigorate traditional growth drivers such as domestic investment and consumption while fostering new engines of growth. These efforts should be accompanied by maintaining macroeconomic stability, promoting cultural and social development, strengthening disaster prevention and control, and protecting the environment.

Stronger action needed to achieve Vietnam’s 2025 economic targets

VOV.VN - Prime Minister Pham Minh Chinh on August 6 signed a directive, asking relevant agencies to mobilise and optimise resources for production and business activities, aiming to promote economic growth and ensure macroeconomic stability.