Ambitious Economic Targets Set

The Ministry of Planning and Investment has proposed an ambitious GDP growth target of 8% for Vietnam, with some localities, particularly Hanoi and HCMC, aiming even higher at 8-10%. This strategic move is designed to propel the nation towards a prosperous era, potentially achieving double-digit growth by 2026.

Financial Strategies and Challenges

To fuel this growth, the government seeks to adjust the budget deficit to 4-4.5% of GDP, up from 3.4% last year. However, this could lead to household, government, and foreign debts exceeding the warning threshold of 5% of GDP. The proposal also includes increasing public spending by 10.7% to VND875 trillion and capping inflation at 4.5-5%.

Economic Indicators and Concerns

Despite these ambitious plans, the early indicators for 2025 show a challenging start, with the Industrial Production Index increasing by only 0.6% year-on-year in January and the Purchasing Managers' Index remaining below 50 points for two consecutive months. These figures highlight the worsening business conditions in the manufacturing sector.

Call for Immediate Impact Policies

Le Quang Tung, secretary general of the National Assembly, emphasized the need for policies with immediate impact, such as visa waivers and aviation incentives, to stimulate the economy. Additionally, removing hurdles faced by businesses is crucial to unlocking resources and stimulating consumption.

Looking Ahead

The National Assembly is expected to vote on these amended targets at an extraordinary session. The government has identified both short- and long-term solutions to achieve these growth targets, focusing on proactive management and increasing capital for investment.