Vietnam's Q1 2025 GDP growth projected to hit 8%

Standard Chartered Bank has forecast GDP growth of 6.7 per cent for 2025 and 7.5 per cent for the first half of the year, attributing the growth to robust foreign direct investment (FDI), particularly in the manufacturing and real estate sectors, a surge in retail sales, strong industrial production, solid export performance and a recovery in tourism.

Meanwhile, the country’s industrial production index (IIP) rose by 7.2 per cent in the first two months of the year.

To meet the 8-per cent target, the GDP must grow by 7.7 per cent in the first quarter (Q1), the general statistics office feels. Q1 growth has been below 7 per cent in the past five years.

Consumption contributes 60 per cent to the country’s GDP, while investment accounts for 36.5 per cent. In contrast, net exports—the value of exports minus the value of imports—make up just 4 per cent of GDP.

This highlights the critical role of stimulating domestic consumption and investment to maintain high economic growth rates, according to a domestic media report.

Experts stress the need to boost consumption and raise investment to achieve the growth target. Private investment remains a key area with significant potential for growth along with public and FDI investments.

Opening up the real estate market is also key for the private sector to expand its investments.

The government is committed to cutting at least 30 per cent of adverse business conditions this year to foster a more dynamic and robust economic environment.

Experts also feel substantial institutional reforms are needed to achieve the growth target.

ALCHEMPro News Desk (DS)