(Bloomberg) — Vietnam Prime Minister Pham Minh Chinh projects the economy will grow up to 7% next year and says the government will strive to exceed that, as he outlined the nation’s economic targets in parliament.
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Chinh said he expects growth of 6.5% to 7% in 2025, while the government will actively push for 7%-7.5% expansion, during his address to the National Assembly on Monday.
The government will aim “to boost new growth drivers” including digital transformation, green transition and the circular economy, Chinh told parliament. It will also press ahead with its anti-graft campaign, he said, including increasing inspection in sectors where corruption is prevalent.
Export-reliant Vietnam saw growth unexpectedly accelerate last quarter, boosted by manufacturing and exports before Super Typhoon Yagi in September, which caused about $3.3 billion in economic damage and killed hundreds of people.
Chinh also expects growth of 6.8% to 7% in 2024, beating the parliament’s target of as much as 6.5%, with a goal to push that to exceed 7%, while curbing inflation at under 4.5%.
The parliament’s economic committee urged the government to focus on clearing bottlenecks to recover the capital market in order to support businesses. The financial sector still poses risks and while the property sector sees some signs of recovery, it’s still struggling, according to Vu Hong Thanh, head of the committee who was also addressing the parliament.
Public investment in the first nine months was only at 47.3% of what the premier planned, and lower than 51.4% in the same period last year, according to Thanh.
Public debt will be around 36%-37% of GDP by the end of 2024, with government debt at about 21%-22% of state revenue, according to the government.
The Southeast Asian nation’s growth target is more optimistic than the 6.1% pace forecast for Vietnam in 2025 by the International Monetary Fund.
The State Bank of Vietnam last week signaled that it is open to a reduction in policy rates “to support businesses and the economy with more capital” following the destruction caused by Yagi, according to the central bank’s Deputy Governor Dao Minh Tu.
The prime minister said 2025 GDP per capita will be about $4,900. The government aims to boost the size of the economy to about $780 billion to $800 billion by 2030, Chinh said. Vietnam’s gross domestic product was $433 billion last year, according to the World Bank.
(Updates with details from premier’s speech)
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