The "three-horse chariot" accelerates synchronously and effectively
From July 1, 2025, the merger of provinces and the official operation of two-level local governments has marked an important institutional milestone, not only helping to streamline the apparatus and save the budget, but also opening up new growth space, reshaping the national economic map - where linked regions, provinces, and large cities are reorganized, will become global industrial, tourism, and financial centers, if planned and invested in the right direction; at the same time, creating conditions for the formation of linked economic regions according to the industry value chain instead of being separate according to the old administrative boundaries. The two-level local government model helps to strongly decentralize power, increase operational efficiency, thereby accelerating investment progress, reforming procedures and accessing the market.
Along with that, Vietnam’s bilateral trade agreement with the United States on reciprocal taxes and its participation in cooperation with BRICS countries have opened up an unprecedented export potential in our country’s modern history. All of this creates a “heavenly time - favorable location - favorable people” opportunity for Vietnam to surpass itself and reach the GDP growth target of more than 8% in 2025.
The three traditional growth drivers of public investment, exports and domestic consumption continue to play a central role. Specifically, public investment disbursement in the first 6 months of 2025 reached a high rate, focusing on major inter-regional infrastructure projects, renewable energy, smart cities and digital transformation. The newly merged areas have the potential to become logistics and industrial centers, creating added value spreading throughout the region.
Exports accelerated thanks to the recovery of the global supply chain, resonated by new trade agreements with the US and BRICS. Vietnam increasingly asserted its position as a strategic manufacturing - technology - service center in Asia - Pacific .
Domestic consumption recovered strongly, thanks to rising incomes, positive consumer sentiment and the expansion of the middle class, especially in newly formed urban areas after the merger.
Breakthrough development solutions
In order to achieve the growth target of more than 8%, the first solution that needs to be implemented is effective and strategic public investment, focusing on “pivotal” projects such as regional beltways, inter-provincial highways, seaports, clean energy, and rural digital transformation. In addition, priority should be given to newly merged provinces to create new growth poles that spread throughout the region.
Exports also need to be promoted based on new advantages. That is, taking advantage of new generation FTAs and especially the tax agreement with the US to promote the electronics, textile, agricultural and aquatic products, and logistics industries; expanding export markets to BRICS countries and emerging economies with national brand strategies, green and sustainable products.
Smart domestic consumption needs to be promoted by supporting targeted consumer interest rates for the service, retail, and domestic tourism industries, while encouraging consumption of domestic products and developing e-commerce in remote areas.
Another equally important group of solutions is developing the private economy - the engine of internal growth. To do so, it is necessary to strongly implement Resolution No. 68-NQ/TU of the Party on developing the private economy as a pillar of the socialist-oriented market economy. Support the conversion from individual business households to enterprises with appropriate tax policies, preferential capital, accounting - legal support, development strategy consulting; gradually consider removing the "credit room", instead applying risk management according to international standards, so that credit "flows to the right place - high efficiency - reasonable cost".
In addition, it is necessary to promote digital transformation, apply artificial intelligence (AI), and improve productivity. AI needs to be applied in learning and work. Students and workers need to be equipped with AI skills to increase personal productivity, promote social innovation, and carry out digital transformation in businesses and governments.
The final group of solutions is transparent institutions - sustainable finance - modern capital markets. To achieve this, it is necessary to strongly reform administrative procedures, comprehensive digitalization, increase transparency, reduce compliance costs; stabilize fiscal - monetary but flexible and adaptive; maintain reasonable exchange rates and interest rates, control inflation within control, while selectively expanding public investment; develop healthy capital markets; develop derivative securities products, attract long-term investors and unblock capital flows for new economic centers after the merger.
2025 may be recognized as the pivotal year of a new development cycle. The country optimizes its apparatus, while opening up strategic economic spaces associated with growth model innovation. The GDP growth target of over 8% is no longer a “high target” if we make good use of the opportunities: Administrative restructuring - strategic trade relations - effective public investment - digital economy - dynamic private sector - innovative institutions.
Director of Academy of Finance Nguyen Dao Tung:
Businesses have many supports.
According to the General Statistics Office (Ministry of Finance), Vietnam's economy continued to recover strongly in the first 6 months of 2025. Gross Domestic Product (GDP) growth in the second quarter of 2025 reached 7.96% compared to the same period in 2024; the first 6 months of 2025 reached 7.52%, the highest level in the same period since 2011.
High GDP growth in the first half of 2025 is mainly driven by consumption (up 7.95%) and investment (up 7.98%). Thus, fiscal policies such as tax exemptions and reductions, increased public investment, or loose monetary measures such as lowering interest rates, increasing credit limits, and flexible exchange rate adjustments have truly been a fulcrum for businesses in the context of an uncertain global economy.
Another bright spot is that the number of newly registered and re-operated enterprises reached more than 152 thousand units, an increase of 26.5% over the same period in 2024, showing that private economic development policies have come into life, consolidating and increasing the trust of people and the business community in the business environment.
Former Director of Vietnam Economic Institute Tran Dinh Thien:
Developing high quality human resources
The growth of the Vietnamese economy is very positive, with a clear upward trend, despite the difficulties of the recent period. If barriers are removed, businesses will have more favorable conditions in accessing resources, thereby forming pioneering businesses that play a leading role in the economy.
What the private economy needs most is not preferential money injections, but an equal business environment and a true market. Businesses operating on old platforms and old management styles must also change.
In addition, the growth engine of the economy also needs to be restructured with a focus on developing high-quality human resources. In the new era, the strength of the workforce will depend on the ability to combine human intelligence and artificial intelligence. If Vietnam can take advantage of this, it can increase its national competitiveness many times over in the future.
Investment Director, Dragon Capital Investment Fund Le Anh Tuan:
Infrastructure migration will exceed expectations
Vietnam is witnessing a strong reform with the apparatus streamlined from 18 to 14 ministries, from 63 to 34 localities. The speed of policy issuance has skyrocketed. A special mechanism allowing the Government to remove legal obstacles will promote 2,200 projects worth 235 billion USD (equivalent to 50% of GDP), creating a significant growth lever.
A clear demonstration of the transformation is the speed of infrastructure development. The Can Gio - Ho Chi Minh City metro line is twice as long as the current metro line but is expected to be completed in 3 years (compared to 12 years for the first line). At this speed, the infrastructure shift in the next 5 years will far exceed expectations.
To realize the goals of infrastructure, technology and private sector development, the capital market plays a very important role, becoming a strategic priority of the Government, aiming at a regional financial center. This will help the cash flow circulate effectively, directly support infrastructure projects, technological innovation and promote private enterprises to accelerate investment and expand scale.
Recorded by Khanh An
Source: https://hanoimoi.vn/dot-pha-tu-duy-hanh-dong-quyet-liet-de-phat-trien-toan-dien-709777.html
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