Foreign trade: Pham at his office in Hanoi. The Vietnamese Prime Minister said the government should remain steadfast in pursuing its goals with greater determination and effort, and be more decisive, flexible and effective. — AP
HANOI: Prime Minister Pham Minh Chinh says that the United States’ new tariff policies present an opportunity for Vietnam to restructure its economy, markets, production and exports, calling for calm, proactive, creative, flexible, timely and effective responses to ensure stability as well as rapid and sustainable development.
At the government’s monthly meeting and online conference with local authorities on Sunday, Pham said multiple international organisations and experts praised Vietnam’s first quarter economic results and prospects.
He said the World Bank forecast Vietnam’s economic growth at 6.8% in 2025 and the United Nations 6.6%, the highest in South-East Asia.
Pham also pointed out several challenges to the economy, including pressure on macroeconomic management and inflation control, with interest rates and exchange rates remaining high amid strong global fluctuations and increased risks from the US reciprocal tariffs.
He said that while first quarter gross domestic product (GDP) growth was higher than initial projections, it fell short of adjusted scenarios, and public investment disbursement was lower compared to the same period last year.
Drawing on lessons learned, he said that the challenges require stronger determination moving forward, demonstrating the resilience, core values, wisdom and culture of the Vietnamese people.
He said that they should remain steadfast in pursuing their established goals with greater determination and effort, and be more decisive, flexible and effective.
Pham emphasised that Vietnam would not change its target of achieving economic growth of 8% or higher this year, while simultaneously maintaining macroeconomic stability, ensuring social welfare and improving people’s livelihoods.
He said exports are an important growth motive, but not the only one.
The US is a major export market, but not the sole one. He urged officials to consider the situation within the context of Vietnam’s overall trade relations with the world, especially given that Vietnam has signed 17 free trade agreements with various countries.
He particularly stressed the need to promote broad national unity as well as enhance solidarity within each agency and the whole political system.
Officials should proactively work with associations and large businesses, providing appropriate and effective support policies while promptly and transparently responding to US concerns, especially regarding intellectual property and combating fraudulent origins of goods.
He directed media agencies like the Vietnam Television, the Voice of Vietnam and the Vietnam News Agency to provide timely, appropriate and comprehensive information that clearly demonstrates the Party and the state’s direction to support the people, protect rights and interests of businesses and investors, and safeguard national interests.
Pham called for continued institutional reforms, streamlining organisational structures and accelerating administrative reform and digital transformation.
He set targets for 2025, including reducing administrative processing time, cutting business costs and eliminating business conditions, all by at least 30%, and ensuring that 100% of administrative procedures can be completed without being restricted by provincial boundaries.
He also requested efforts to renew traditional growth drivers while developing new engines.
This includes accelerating public investment disbursement, building plans to promote harmonious and sustainable trade with the United States, China and other major partners.
Special attention should be given to expanding into new export markets such as the Middle East, Central Asia, Eastern Europe, Halal markets, Latin America and Africa.
Additionally, to maintain macroeconomic stability and control inflation, he asked the State Bank of Vietnam to implement proactive, flexible monetary policies.
He said reasonable credit growth, focusing on priority sectors, growth drivers, agricultural exports and national priority projects.
The Finance Ministry was tasked with urgently developing growth scenarios for the rest of 2025, finalising draft decrees on global minimum tax implementation, VAT reduction and private economic development.
The PM also stressed the importance of strengthening revenue management, especially from eCommerce and food services, while saving regular expenditures for development investment.
Meanwhile, he asked the Ministry of Construction to accelerate project progress for the completion of 3,000km of expressways in 2025 and substantially complete the first phase of the Long Thanh Airport project. He also directed the preparation for inaugurating and launching about 50 major projects to commemorate the 50th anniversary of the liberation of the south and national reunification.
In the first quarter of 2025, the macroeconomy kept basically stable, with inflation under control, growth promoted and major economic balances ensured.
GDP growth reached 6.85% year-on-year, exceeding the target set by the government resolution and representing the fastest pace since 2020.
This placed Vietnam among the world’s fastest-growing economies.
Other economic indicators were equally encouraging, with the consumer price index (CPI) rising by 3.13% year-on-year, state budget revenue reaching 36.7% of the annual target (up 29.3% from the same period last year), and foreign trade rising by 13.7% with a trade surplus of some US$3.16bil.
The registered foreign direct investment (FDI) was approximately US$11bil, a 34.7% increase compared to the same period last year, while the disbursed FDI capital approached US$5bil, up 7.2%. — Viet Nam News/ANN
