HANOI (Bloomberg): Vietnam’s Prime Minister Le Minh Hung projected that gross domestic product will expand at least 10% next year as he outlined the nation’s economic targets in a speech to parliament.
Hung said the government will continue to push for double-digit growth while maintaining macroeconomic stability and keeping inflation at about 4.5% for 2027.
The government will take "decisive and effective measures to lower lending rates, and direct credit toward production, business and exports” while ensuring sufficient electricity and fuel supplies, Hung told the National Assembly on Saturday.
The premier previously said the government remains committed to its multiyear double-digit economic growth target set last year. Hung has ordered ministries to fully disburse 2026’s public investment spending and keep key projects on schedule, according to a government post.
Vietnam, a linchpin in global supply chains that makes products for the likes of Apple Inc. and renowned clothing brands, has experienced rapid economic growth despite the threat of US tariffs and the energy shock from the Iran war. Vietnamese officials, though, caution the economy faces challenges to hit annual growth of 10%.
The central bank said it is facing mounting pressure to keep interest rates stable as the Iran conflict fuels inflation and raises banks’ funding costs, even as more loans are needed to help meet the government’s 10% growth push.
Inflation quickened to 5.08% in September from a year earlier, higher than the government’s intended cap of 4.5% this year. This is forcing the monetary authority to prioritize price and exchange-rate stability.
Government data released this month showed an economy running hot, averaging 9% growth in the first three quarters, along with a surge in exports and foreign investment pledges.
The growth target of at least 10% next year "reflects a strong determination of the government, yet it poses significant challenges, given that the foundation for expansion remains unstable, along with mounting inflationary pressures and increasing demand for capital and energy,” Phan Van Mai, head of parliament’s economic committee, told legislators.
Vietnam has been working to avoid US tariff pain through months of negotiations with Washington. Transshipment and non-tariff barriers have been sticking points.
The two countries are "very close” to a trade deal, President To Lam said in an interview last month. The Southeast Asian country has repeatedly pledged to buy more high-tech American goods, aircraft and liquefied natural gas in an effort to narrow its trade surplus with the US.
Premier Hung also told the parliament that the government will prioritize tech development, including new technologies for the low-altitude economy, while focusing resources on developing the seaport system and key inland waterway transport routes and railway projects.
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