First, Standing Member Phan Duc Hieu voiced his perspectives on the economic growth of Vietnam in 2024, saying that despite a volatile global and domestic landscape, Vietnam’s socio-economic performance in 2024 met or exceeded all 15 key targets.
A particular highlight was the surpassing of labour productivity targets, a feat achieved after three consecutive years of underperformance. Macroeconomic stability was maintained, inflation remained under control, and economic growth outstripped projections. Key macroeconomic balances were secured, generating a substantial surplus. Public, government, and national foreign debt, alongside state budget deficits, were effectively managed within permissible parameters.
Vietnam’s commendable 2024 economic achievements reflect strong efforts from businesses and citizens, combined with decisive leadership from the Party, the Government, and local authorities. While positive forecasts anticipated these outcomes, with revisions upwards later in the year, it's important to acknowledge that this growth builds upon the more modest growth of 2023.
In response to the opinion that subdued consumer spending means economic growth has not translated into income gains for a significant portion of the population, Standing Member Phan Duc Hieu shared that there are various factors leading such a situation.
The robust overall economic growth does not imply uniform prosperity across all businesses or widespread income gains. Many small and micro-enterprises are facing headwinds. Business closures remain elevated, smaller firms struggle to remain viable, and many enterprises are yet to fully integrate into global value chains.
Meanwhile, large corporations predominantly benefit from large-scale investment projects, while smaller traditional retail outlets are increasingly displaced by supermarkets, convenience stores, and the burgeoning e-commerce sector.
Bridging the growth gap is a persistent priority for all nations, including Vietnam. While large and flagship enterprises play a crucial role, small and medium-sized enterprises (SMEs) are vital to the economy, particularly regarding job creation, income generation, and living standard enhancement.
Uneven distribution of business opportunities risks triggering business closures, particularly among SMEs, leading to job losses and income contraction. If overall growth does not translate into widespread income gains, a segment of the population might be left behind. Facilitating greater SME participation in major investment projects is, therefore, crucial.
The Standing Member then analyzed in details new business opportunities in 2025. Now that the institutional bottleneck has been identified, it is high time to collaborate to address it. This will undoubtedly create favourable conditions for businesses and organisations to achieve breakthroughs.
Significant strides have been made in institutional reform, evidenced by a series of laws and resolutions recently passed by the National Assembly in its 8th session, promoting clarity of roles and responsibilities, and maximizing flexibility to support businesses and citizens, rather than solely focusing on regulation and oversight.
The unprecedented early implementation (five months ahead of schedule) of the Land Law, Housing Law, and Real Estate Business Law underscores both the strong commitment to institutional reform and the emphasis on timely and coordinated action. The National Assembly has also approved amendments to numerous other laws and enacted regulatory resolutions to alleviate legal impediments and accelerate investment project implementation.
It is worth noting that policy implementation inherently involves a time lag, which must be minimized to expedite and broaden business opportunities. Local authorities have been granted greater autonomy to make decisions, take action, and assume responsibility, thereby contributing to national economic growth.
Notwithstanding these positive developments, challenges persist. The economy’s scale and resilience remain modest, competitiveness is limited, growth quality remains suboptimal, the growth model has seen limited progress, and there is still heavy reliance on foreign direct investment (FDI).
Capital provision to the economy is constrained, with excessive reliance on bank credit, while the capital market, particularly the corporate bond market, has not fully recovered and is not adequately fulfilling its role as a medium- to long-term financing channel. The banking system also faces latent risks related to non-performing loans.
International economic events like new policies issued by the newly elected President of the US Donald Trump as well as global geopolitical instabilities also present tough challenges to the national economic growth.
Commenting on the feasibility of the 8-percent economic growth rate for 2025 as stated in formal Dispatch No.137/CD-TTg by the Prime Minister, Standing Member Phan Duc Hieu said that while next year presents both opportunities and challenges, he is confident that with the existing policy framework, resolute implementation from central to local levels, and continued national efforts and the Government’s ambitious target is attainable.
