PM asks for response plans for adverse scenarios in 2025, including trade war

Addressing a regular Government meeting for January in Hanoi on February 5, Chinh noted that Vietnam aims to achieve a GDP growth rate of 8% or higher in 2025, after expanding 7/09% in 2024, to propel national development in the following years.

He viewed the goal as a challenging task in the context of unpredictable developments both regionally and globally, which would directly impact Vietnam, particularly in export, business production, and macroeconomic stability.

He asked Government members to make an in-depth analysis and forecasts in February and beyond, paying close attention to emerging issues such as the potential occurrence of a global trade war. Such an event could disrupt supply chains and reduce export markets, he stressed.

The Prime Minister called for solutions to respond the situation swiftly and effectively, to ensure that Vietnam remains proactive and avoids being caught off guard, while seizing opportunities to maintain momentum and sustain growth.

To this end, he suggested several key measures, including continuing to revitalize traditional growth drivers and foster new ones; expanding and diversifying markets, products, and supply chains; and prioritizing new markets such as the Middle East and South America to reduce reliance on traditional partners.

Among other things, the Prime Minister tasked the Ministry of Industry and Trade with urgently reporting to the Government and proposing to the National Assembly at its coming session regarding mechanisms and policies to build the Ninh Thuan Nuclear Power Plant. The ministry was also directed to complete and issue updated regulations on electricity trading after incorporating feedback from businesses and citizens.

The Ministry of Transport was instructed to report to the Government and submit proposals to the National Assembly on implementing a railway project connecting Vietnam to China and resolving legal obstacles for several Build-Operate-transfer (BOT) road projects.

Emphasizing the need to remove institutional barriers, the Prime Minister required ministers and heads of sectors to submit monthly reports on legal challenges in their respective fields, detailing the nature of the obstacles, their location, and the responsible parties to address them, so that the Government can propose solutions to higher authorities.

At the same time, he asked ministries, sectors, and localities to accelerate the streamlining of organizational structures, to ensure no disruption in operations.

The Government leader reminded the designated agencies of the major goals to be completed several key national infrastructure projects this year, including 3,000 km of expressways by the end of 2025, Tan Son Nhat International Airport’s Terminal 3 by April 30, Phase 1 of Long Thanh International Airport in 2025, and projects to build social housing and complete eliminating temporary and dilapidated houses.

It was reported at the meeting that Vietnam has kept its economic recovery on track, with positive signs recorded in January 2025.

Several key indicators in business operations, industrial production, foreign direct investment (FDI) attraction, and state budget revenue continued to grow positively, performing better than the same period last year and creating momentum for full-year growth.

The macroeconomy remained stable, inflation was under control, and major balances were ensured. The Consumer Price Index in January increased by 3.63% compared to the same period last year. Market supply and demand as well as commodity prices were stable, with no sudden price hikes or incidents of market manipulation.

State budget revenue in January reached 14% of the annual estimate, up 3.5% year-on-year. Import-export activities continued without disruption, with total trade turnover estimated at US$63.15 billion and a trade surplus of US$3.03 billion.

Total registered FDI capital exceeded US$4.3 billion, an increase of 48.6% year-on-year, while disbursed FDI capital reached over US$1.5 billion, up 2%.