Vietnam’s GDP Growth Target

HANOI (Reuters) – The Vietnamese government aims to raise its gross domestic product (GDP) by 8.3% to 8.5% for this year, Prime Minister Pham Minh Chinh announced on Wednesday, despite existing challenges.

Chinh stated that this target, compared to last year’s growth of 7.09%, will “create a firm foundation for double-digit growth in the 2026-2030 period.” He made these remarks during a government meeting in Hanoi.

Earlier, lawmakers in this Southeast Asian industrial hub approved a GDP growth target of at least 8% for this year.

Chinh emphasized the need for Vietnam to renew its traditional growth drivers such as domestic consumption, exports, and investments, while also embracing new growth factors like green growth and the digital economy.

Nonetheless, Vietnam still faces numerous challenges, including conflicts, geopolitical competition, trade tensions, supply chain disruptions, and climate change.

This announcement followed U.S. President Donald Trump’s statement regarding a nearly completed trade agreement with Vietnam. Trump mentioned earlier in the month that Vietnamese goods would incur a 20% tariff, with trans-shipments from third countries facing a 40% levy—lower than the 46% he initially threatened in April.

In the second quarter, Vietnam’s GDP accelerated to 7.96% year-on-year, up from 6.93% in the first quarter.