A 40% increase in infrastructure investment that the Vietnamese Government is now planning would add approximately 2 percentage points to Vietnam’s 2025 GDP growth - if the Government manages to hit its disbursement targets this year, according to Michael Kokalari, chief economist at VinaCapital.

Prime Minister Pham Minh Chinh on March 1 signed Directive No. 05/CT-TTg outlining key tasks and breakthrough solutions to drive economic growth and accelerate public investment disbursement, ensuring that Vietnam’s GDP growth reaches at least 8% in 2025.

VOV.VN - By the end of the year the disbursement rate for public investment capital sourced from foreign loans allocated to ministries, sectors, and localities has only met about one third of the overall plan.

Vietnam is speeding up public investment disbursement to push growth, after going through difficult times due to the severe economic impact of Typhoon Yagi.

Provinces, ministries and government agencies had allocated VND664.9 trillion (US$26.7 billion) for public investment as of the end of September, showed data from the Ministry of Finance (MoF).

VOV.VN - Vietnam’s industrial production remains on an upward trajectory, with the index of industrial production (IIP) over the past eight months estimated to rise by 8.6% over the same period last year, the General Statistics Office (GSO) reported.

VOV.VN - Prime Minister Pham Minh Chinh underlined the need to clarify causes and bottlenecks leading to the slow disbursement of investment capital while chairing a conference aimed at promoting public investment in 2024 held on July 16 in Hanoi.

The disbursement of public investment from the State budget in the first five months of this year was estimated to reach VND190.6 trillion (US$7.44 billion), equal to 26.6% of the yearly target and 5% higher than the same period last year, according to the General Statistics Office (GSO).

VOV.VN - Despite facing difficulties ahead, Vietnam will be able to control inflation below the target set by the National Assembly this year, according to experts.

The Vietnamese economy is likely to expand by 6-6.5% in the base scenario, with even recovery recorded in all sectors of agriculture, industry, construction and services, Dr. Can Van Luc, a member of the National Financial-Monetary Policy Advisory Council, has predicted.