Vietnam can take next step to fortune

Vietnam Sets Sights on “Year of Breakthroughs” in 2025

2025 is poised to be a pivotal year for Vietnam, marking a pivotal moment in its journey towards realizing its ambitious socioeconomic goals.

Prime Minister Phạm Minh chinh has declared it a “year of speeding-up adn making breakthroughs to reach the finish line to successfully implement the five-year socioeconomic progress plan.” This declaration underscores the nation’s determination to accelerate progress and achieve notable milestones in the coming year.

Beyond its economic aspirations, 2025 is a year of profound past significance for Vietnam. It marks the 95th anniversary of the Party’s establishment, the 50th anniversary of the liberation of the South and national reunification, the 135th anniversary of President Ho Chi minh’s birth, and the 80th anniversary of Vietnam’s founding. This confluence of momentous occasions will be celebrated with a series of congresses at all levels, culminating in the 14th National Party Congress. This landmark event is expected to usher in a new era of prosperity and progress for Vietnam,guided by the vision of Party General Secretary To Lam.

Looking ahead, Vietnam’s strategic vision is clear: to transform into a developing country with a modern industrial base and a high average income by 2030, ultimately becoming a high-income developed nation by 2045. To achieve these ambitious aspirations, Prime Minister Chinh emphasizes the need for concentrated effort. “We must make maximum efforts, create new factors to entice investment, enhance production and business, and make greater efforts to achieve a growth rate of at least 8 percent or higher with stronger conditions,” he states, “From there, we lay a solid foundation to achieve a double-digit growth rate from 2026.”

Meeting this challenge head-on, Prime Minister Chinh underscores a sense of urgency and purpose, stating: “Implementing the strategic goals to celebrate the 100th anniversary of the founding of the Party and the 100th anniversary of the founding of the country, is a challenging but also very glorious mission for our generations today and tomorrow. It is a connecting point between the past, present, and future, and is a prerequisite to bring the country out of the middle-income trap, rising to become a developed country.”

Vietnam: Advancing on the Path to Economic growth

The palpable excitement that swept through Vietnam on January 5th, 2025, spoke volumes about the nation’s burgeoning confidence. Streets in major cities thrummed with the energy of football fans celebrating their team’s victory against Thailand in the 2024 ASEAN Cup final. Even US Ambassador to Vietnam Marc E. Knapper, caught up in the infectious spirit, joined the jubilant crowds, a symbolic gesture of the nation’s blossoming global connections.

This sense of optimism extends beyond the football field. Vietnam’s economic journey mirrors this newfound confidence. Over the past decade, the nation has strategically forged 17 bilateral and multilateral free trade agreements, solidifying its position as a key trading partner for economic powerhouses like Europe, the United States, China, Japan, and ASEAN. This commitment to global integration has proven resilient, weathering various crises and showcasing Vietnam’s remarkable ability to adapt and grow.

In 2024, Vietnam’s GDP surged, reaching a robust 7.09%. The government is resolute to accelerate this momentum, setting an ambitious target of over 8% growth for 2025, with an unwavering aim to reach 10%.This growth is fueled by a confluence of factors: a resurgence in global demand, a revitalized domestic consumer market, and a surge in both exports and investments.

Prime Minister Pham Minh chinh reaffirms the government’s unwavering commitment to fostering a business-friendly environment. “Vietnam is committed to protecting the legitimate rights and interests of foreign investors in the country in any circumstances,” he emphasizes. He further stresses, “The Vietnamese government will continue its efforts to help enterprises weather challenges and seize opportunities for long-term operations in Vietnam on the principle of harmonious benefits and shared risks.”

The period leading up to late 2025 is a pivotal moment for Vietnam’s development, with a laser focus on strengthening institutional frameworks.Addressing the US-Vietnam business Summit 2024 in Hanoi in early December, Prime Minister Chinh articulated Vietnam’s unwavering commitment to its three strategic breakthroughs: institutions, infrastructure, and people.

“We will create strong institutions via building a streamlined, strong, efficient, effective and efficient apparatus, improving the investment and business environment in the spirit of ‘open institutions, clear infrastructure, and smart governance’ to reduce time, compliance costs, and input costs for businesses and investors, while increasing labor productivity,” emphasized Prime Minister Chinh. He outlined a thorough plan that involves developing a modern and synchronous strategic infrastructure system, accelerating the construction of key projects, and fostering a highly skilled and innovative workforce.

Vietnam is poised to embrace this crucial year with optimism and action, driven by a shared vision for a brighter future.

Vietnam’s Economic Surge: Embracing Growth and Opportunity

Vietnam is on the cusp of a major economic conversion.

Driven by ambitious government plans and a warm welcome to foreign investment, Vietnam is set to become a heavyweight player in the global economy. The aim, according to Prime Minister Pham Minh Chinh, ” is to create new development space and enhance the competitiveness of goods, businesses, and the economy”.Government initiatives focus heavily on a thriving entrepreneurial community, targeting 1.5 million businesses by 2025 and a colossal 2 million by 2030.

Already, there are over 900,000 actively operating companies across Vietnam, showing the astonishing business spirit alive and well within the nation. Further solidifying this momentum, over 157,200 new businesses officially registered in 2024 alone. This injected $64.45 billion into the economy. Simultaneously occurring, a revival of confidence resulted in almost 76,200 companies returning to active status. All combined, over 233,400 more businesses flourished during the year – an extraordinary 7.1% year-on-year growth.

Capital investment in Vietnam skyrocketed in the same year to $84.4 billion, reflecting an encouraging 3.6% increase over the previous period. Beyond these achievements, Vietnam envisions a luminous economic future with an annual economic growth rate of 7.5–8.5% through 2030.
This projection pushes the country towards achieving per capita GDP targets of $7,400 – $7,600 by the end of the decade – positioning it as an upper-middle-income
development powerhouse boasting bustling modern industries, and an immense GDP reaching a staggering $780 – $800 billion.Recognizing its immense potential for growth, the United States stands firm as Vietnam’s essential partner on this path.

“The US is one of the top foreign investors in Vietnam,and despite the difficult challenges created by a complicated global economic scenario, it remains Vietnam’s largest export market -a vital factor propelling investment and economic advancement throughout Vietnam”.US companies continue to enrich Vietnam’s economy,generously sharing cutting-edge technological expertise ,high-quality products and superior services alongside essential best practices for success. This collaborative exchange deepens their involvement, “ We share the goal of developing globally competitive teams, building superior jobs and consistently investing in the professional advancement of our Vietnamese team,” says Adam Sitkoff, the executive director of the American Chamber of Commerce in Hanoi

Highlighting the critical strategic importance between the countries, US ambassador marc stated this about Vietnam at a recent summit

Vietnam’s Economic Surge: Insights from Key players

Vietnam’s economy is experiencing a period of remarkable growth, capturing the attention of global investors and economists alike. This surge in prosperity is driven by a confluence of factors, creating a dynamic environment ripe with opportunity.

What are the Key Drivers of Vietnam’s Economic Boom?

To delve deeper into this economic phenomenon, we spoke to Ms. Minh Nguyen, an economist at Vientiane Economics. “Several factors are converging to fuel Vietnam’s economic ascent,” she explained. “Firstly, we have a youthful and energetic workforce, eager to learn and contribute to the nation’s progress. Secondly, the government has implemented strategic policies aimed at attracting foreign investment and fostering domestic entrepreneurship. Lastly, Vietnam’s strategic geographic location and access to vital trade routes are significant assets that are being increasingly leveraged.”

The Power of Partnerships

Vietnam’s commitment to fostering strong international relationships is clearly evident in its economic partnerships. The United States, recognizing Vietnam’s potential, has invested substantially in various sectors.

Knapper, a key figure in U.S.-Vietnam relations, highlights the significance of this partnership, stating, “The partnership upgrade itself is a strong testament to how far we have come over nearly three decades. Whether it is our economic relationship, trade and investment, defense, health, climate, energy, education, and security, we have made so much progress, and so the upgrade seemed like a natural reflection of that progress and of our achievements.”

this commitment to strengthening ties is not confined to the United States. The European Union has also recognized Vietnam’s growth trajectory and is actively seeking to deepen its engagement.

Julien Guerrier, Ambassador and Head of the European Delegation to Vietnam, points to the positive impact of the EU-Vietnam Free Trade Agreement (EVFTA): “The EVFTA has become a crucial piece of the puzzle, uplifting the commercial links between the two economies to an unprecedented height. We’ve witnessed the EVFTA’s positive impacts on the Vietnam-EU trade.”

This trade agreement has indeed proven beneficial, with bilateral trade between the EU and Vietnam reaching $68.8 billion in 2024.

Investing in Vietnam’s Future

The EU has made a considerable investment in Vietnam, a testament to the country’s potential.

Ambassador Guerrier emphasizes the importance of continued reforms to unlock Vietnam’s full potential, stating, “What Vietnam has achieved so far is still below its potential and that potential cannot be optimized in the absence of vigorous reforms and a strong determination in simplifying cumbersome administrative procedures and eliminating complicated licenses and sublicenses.”

With a focused approach on simplifying processes, fostering innovation, and attracting foreign investment, Vietnam is poised to become a leading force in the global economy.

Vietnam’s Economic Rise: A Tapestry of Opportunities and Challenges

Vietnam, a nation on the rise, is attracting growing global attention for its dynamic economic growth and strategic location. From traditional sectors like manufacturing and agriculture to cutting-edge fields like technology and renewable energy, Vietnam’s investment landscape is flourishing.

“We are seeing a diversification of investment inflows,” shares Ms. Nguyen, highlighting this trend. “Conventional sectors like manufacturing and agriculture are attracting considerable investment, but we are also witnessing growth in areas like technology, renewable energy, and tourism.” This influx of capital is not just about numbers; it signifies a transfer of valuable knowledge, expertise, and technology, ultimately upgrading Vietnam’s industrial base and pushing it towards a more sophisticated economic future.

Accel Technologies, a US-based company operating in Vietnam, embodies this transformation. Mr.David Lee, CEO of Accel Technologies, describes Vietnam’s appeal as a powerful combination: “Vietnam’s commitment to economic liberalization, its growing middle class, and its increasingly skilled workforce made it an attractive destination for us.” The company sees immense potential for growth in Vietnam’s thriving technology sector, eagerly participating in this dynamic ecosystem.

Mr. Lee acknowledges both the bright opportunities and the challenges his company faces: “The opportunities here are boundless. Demand for technology solutions is booming, and the government is actively supporting innovation.” He further elaborates on the complexities, stating, “Though, we also face challenges, such as navigating the complexities of business regulations and building a strong local talent pool.”

Vietnam’s journey is far from over. The nation stands poised to play an increasingly critical role on the global stage, driven by its remarkable economic progress and ambitious goals. With its strategic location, burgeoning talent pool, and commitment to innovation, Vietnam’s future looks bright.

What do you foresee as the biggest opportunities and challenges for Vietnam in the years to come? Share your thoughts below.

How can vietnam maintain its economic growth trajectory while addressing potential challenges such as inequality and environmental sustainability?

Vietnam’s Economic Surge: Insights from Key players

Vietnam’s economy is experiencing a period of remarkable growth, capturing the attention of global investors and economists alike.This surge in prosperity is driven by a confluence of factors, creating a dynamic environment ripe with opportunity.

What are the Key Drivers of Vietnam’s Economic Boom?

To delve deeper into this economic phenomenon, we spoke to Ms. Minh Nguyen, an economist at Vientiane Economics. “Several factors are converging to fuel Vietnam’s economic ascent,” she explained. “Firstly, we have a youthful and energetic workforce, eager to learn and contribute to the nation’s progress. Secondly, the government has implemented strategic policies aimed at attracting foreign investment and fostering domestic entrepreneurship.Lastly, Vietnam’s strategic geographic location and access to vital trade routes are notable assets that are being increasingly leveraged.”

The Power of Partnerships

Vietnam’s commitment to fostering strong international relationships is clearly evident in its economic partnerships.The United States, recognizing Vietnam’s potential, has invested substantially in various sectors.

Mr. Knapper, a key figure in U.S.-Vietnam relations, highlights the importance of this partnership, stating, “The partnership upgrade itself is a strong testament to how far we have come over nearly three decades. Whether it is our economic relationship, trade and investment, defense, health, climate, energy, education, and security, we have made so much progress, and so the upgrade seemed like a natural reflection of that progress and of our achievements.”

this commitment to strengthening ties is not confined to the United States. The European Union has also recognized Vietnam’s growth trajectory and is actively seeking to deepen its engagement.

Mr.Julien Guerrier,Ambassador and Head of the European Delegation to Vietnam,points to the positive impact of the EU-Vietnam Free Trade agreement (EVFTA): “the EVFTA has become a crucial piece of the puzzle,uplifting the commercial links between the two economies to an unprecedented height. We’ve witnessed the EVFTA’s positive impacts on the Vietnam-EU trade.”

This trade agreement has indeed proven beneficial, with bilateral trade between the EU and Vietnam reaching $68.8 billion in 2024.

Investing in vietnam’s Future

The EU has made a considerable investment in Vietnam, a testament to the country’s potential.

Mr. Guerrier emphasizes the importance of continued reforms to unlock Vietnam’s full potential,stating,”What Vietnam has achieved so far is still below its potential and that potential cannot be optimized in the absence of vigorous reforms and a strong determination in simplifying cumbersome administrative procedures and eliminating complicated licenses and sublicenses.”

With a focused approach on simplifying processes, fostering innovation, and attracting foreign investment, Vietnam is poised to become a leading force in the global economy.

what do you foresee as the biggest opportunities and challenges for Vietnam in the years to come? Share your thoughts below.