Lach Huyen Terminal in Hai Phong City, northern Vietnam, in January 2025. Photo by VnExpress/Le Tan
The government is seeking to raise this year’s economic growth target to 8% from the earlier minimum of 6.5%.
The Ministry of Planning and Investment said in a proposal to the National Assembly Monday that some localities, especially Hanoi and HCMC, need to aim for growth of 8-10% for the country to reach the overall target.
The government also wants the leeway to run a budget deficit to 4-4.5% of GDP, up from 3.4% last year, to fuel investment.
Household, government and foreign debts could exceed the warning threshold (5% of GDP), it said.
The proposal seeks to grow GDP to US$500 billion and per capita income to $5,000 this year.
Industries will need to grow by 0.7-1.3 percentage points higher than last year.
The government also wants to increase public spending by 10.7% from the earlier goal to VND875 trillion and cap inflation at 4.5-5%.
%Vietnam's annual GDP growth*target6.416.415.55.55.555.556.426.426.996.996.696.696.946.947.477.477.367.362.872.872.552.558.128.125.055.057.097.0988201120122013201420152016201720182019202020212022202320242025*23456789
2022● GDP growth: 8.12
Vu Hong Thanh, the chairman of the National Assembly Economic Committee, said the new GDP target would help create a foundation for double-digit growth from 2026 onwards, ushering the country into an era of prosperity.
But so far 2025 has not been positive, with indicators such as 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, he said.
"These figures show that business conditions are worsening in the manufacturing sector."
He said the government needs to ensure that the 8% growth target is achievable and identify solutions to ensure financial security and public debt safety.
The proposed adjustments to the debt ceiling are necessary to mobilize resources for development, but repayment obligations must be met, he added.
Le Quang Tung, secretary general of the National Assembly, called for policies that would have an immediate impact such as visa waivers and aviation incentives.
The government also needs to remove hurdles faced by businesses to unlock resources and stimulate consumption, he added.
The Economic Committee wants the government to manage monetary and fiscal policies proactively to secure resources for key national projects, he said.
Minister of Planning and Investment Nguyen Chi Dung said the government has identified some short- and long-term solutions to achieve the growth targets.
He would pay heed to the opinions expressed by lawmakers with the goal of "being proactive in management and increasing capital for investment."
The National Assembly is expected vote on the amended targets at an extraordinary session Wednesday.