Government pushes bold agenda as development term nears end

Trade performance has also remained strong. In July alone, total import-export turnover reached $82.2 billion, a year-on-year increase of 16.8 per cent.

As Việt Nam enters the final stretch of its 2021–2025 development term, the Government is accelerating efforts across all fronts, with Prime Minister Phạm Minh Chính urging ministries and agencies to act decisively and deliver on long-standing priorities.

The message was delivered at the Government’s regular meeting on Thursday, held via teleconference with provincial leaders from across the country.

Minister Trần Văn Sơn, Head of the Government Office, emphasised that despite a turbulent global environment, Việt Nam’s domestic landscape continues to show encouraging signs.

While the international situation remains volatile with rising geopolitical tensions, new economic headwinds and unpredictable risks, the country’s economic and social performance in July and the first seven months of 2025 has remained stable and, in many areas, improved over the same period last year.

Progress across key sectors

Việt Nam’s macroeconomic foundations have held firm. Inflation remains under control, with the consumer price index rising 3.26 per cent year-on-year. State budget revenues reached over 80 per cent of the annual estimate, even after major tax reductions and deferrals totaling more than VNĐ171 trillion (US$6.5 billion).

Trade performance has also remained strong. In July alone, total import-export turnover reached $82.2 billion, a year-on-year increase of 16.8 per cent. Over the seven-month period, trade topped $514 billion, with a trade surplus of more than $10 billion.

Foreign investment has surged, with newly registered capital reaching $24.1 billion in the seven months. Realised FDI also rose, exceeding $13.6 billion.

Meanwhile, industrial production maintained a solid pace, with the manufacturing sector growing by 9.3 per cent year-on-year and the Purchasing Managers’ Index rebounding from contraction to expansion territory in July.

Retail sales and service revenues continued to climb, while tourism staged a strong comeback, welcoming over 1.5 million international visitors in July, a 35-per-cent increase compared to last year.

Social indicators were also encouraging: over 96 per cent of households reported stable or improved incomes and nearly 269,000 makeshift or dilapidated homes have been rebuilt, accounting for 95 per cent of the national target.

These gains have taken place against the backdrop of institutional reforms, notably the initial rollout of the two-tier local government model, which the Government says is beginning to operate smoothly and meet the needs of citizens and businesses.

Despite this progress, the Government remains cautious. It identified several persistent challenges that require urgent attention.

Inflationary pressure from global markets continues to pose risks. Some sectors still face production and business difficulties, and industrial growth in major hubs such as Hà Nội and HCM City has yet to regain its full momentum.

Traditional growth drivers have yet to meet expectations, while new ones, such as green industries and digital transformation, are still in early development and need time to mature.

Bottlenecks in legal and institutional frameworks, particularly in land management and energy, also continue to impede investment and project implementation.

At the local level, the transition to the new government structure has exposed gaps in staffing, infrastructure and digital capacity.

PM’s call to action

In response, Prime Minister Chính outlined a 14-point directive to consolidate gains and overcome systemic obstacles.

A central focus is ensuring the smooth implementation of the two-tier local governance model. Ministries and agencies are required to complete assessments of housing and transportation challenges facing civil servants affected by administrative restructuring by August 15.

The State Bank of Vietnam will provide preferential credit to help these workers access housing.

The Government is also preparing for global shifts, particularly new US tariff policies, and is committed to maintaining macroeconomic stability through close coordination between fiscal and monetary policy.

Lending rates are to be further reduced, and the gold market will be tightly managed. Authorities are targeting a 25 per cent increase in State revenue over 2025 budget estimates, while continuing tax support measures for businesses.

Investment disbursement remains a top priority, with the Government aiming for 100 per cent execution of the public capital plan. Resources are being allocated to ensure the timely implementation of key programmes and to support staff affected by the ongoing restructuring process.

Plans are also underway to upgrade Việt Nam’s stock market classification and ensure uninterrupted supplies of fuel, electricity and essential goods.

On the social front, preparations are being made for the start of the 2025–2026 academic year, including the renovation and construction of 100 boarding and semi-boarding schools in border communes.

Public healthcare at the grassroots level is also set for enhancement. The campaign to eliminate all makeshift or dilapidated housing is expected to conclude nationwide by the end of August.

The PM also ordered intensified crackdowns on smuggling and counterfeit goods and demanded that long-delayed investment projects, particularly in land and electricity, be unblocked and activated to mobilise new economic resources.

Looking ahead, the Government is preparing to mark a historic moment. On August 19 and September 2, Việt Nam will celebrate the 80th anniversaries of the August Revolution and National Day.

Major infrastructure projects will be launched or inaugurated to coincide with the occasion, alongside a nationwide exhibition titled 80 Years of the Journey to Independence, Freedom and Happiness.

A large-scale military parade and patriotic festivities, including fireworks and concerts across 34 provinces and cities, will accompany the national celebration.

Chính also confirmed that land clearance is underway for the high-speed railway project, scheduled to begin construction on December 19, 2025.

Meanwhile, preparations for high-level diplomatic engagements, including trips by General Secretary Tô Lâm and top Party and State leaders, are moving forward.

As the meeting concluded, Chính reiterated the need for decisive, coordinated action at all levels of Government. With more than two-thirds of 2025 already behind, he warned that the window for fulfilling the term’s objectives is rapidly narrowing.