Việt Nam's GDP growth poised to beat forecast by 0.3%: official

The government is also pushing for public investment capital disbursement, promoting new growth drivers, and capitalising on the 17 signed free trade agreements while advancing new trade pacts.

Việt Nam’s economy outpaced forecasts in the first half, with GDP growth likely to exceed projections by 0.2 to 0.3 per cent, Minister-Chairman of the Government Office Trần Văn Sơn said on Thursday.

At a press briefing to announce the outcomes of the regular Cabinet meeting and the online conference between the Government and 34 cities and provinces, along with 3,321 communes, wards, and special zones the same day, Sơn said GPD growth for Q2 is estimated at 7.67 per cent, bringing the six-month figure to 7.31 per cent.

However, updated data through June 30 suggests the GDP growth rate in the first half could be higher than initially projected, driven by improving monthly indicators in production and budget revenue, a stable macroeconomy, and a controlled inflation rate.

The Ministry of Finance reported that the manufacturing and processing industry grew by 10 per cent in the first half.

Export performance was strong, rising by 14.4 per cent, and trade surplus was estimated at US$7.63 billion. Total retail sales of goods and consumer service revenue rose by 9.3 per cent.

Total social investment rose by 9.8 per cent in the first six months, while registered foreign direct investment (FDI) reached $21.5 billion, a year-on-year surge of 32.6 per cent, the highest since 2009. Disbursed FDI stood at over $11.7 billion, marking an 8.1 per cent increase.

Besides, the business landscape showed remarkable dynamism, with 152,700 enterprises entering and re-entering the market in the period, 20 per cent higher than the number of enterprises exiting the market.

As challenges are on the horizon, Sơn said, the Government outlined several missions and measures for the final six months of the year, including closely monitoring the operations of the two-tier local government model, implementing regulations on decentralisation and authority distribution to provide timely guidance and resolve local bottlenecks, ensuring smooth settlement of administrative procedures.

Maintaining macroeconomic stability must be a focus, with the State Bank of Việt Nam requested to operate rational monetary policy tools, interest rates, and exchange rates to support production and business operations while meeting the economy's capital needs.

The government is also pushing for public investment capital disbursement, promoting new growth drivers, and capitalising on the 17 signed free trade agreements while advancing new trade pacts.

Sơn stated that concerted efforts must be made to complete the construction of at least 3,000 kilometres of expressways and over 1,000 kilometres of coastal roads this year.

All ministries, sectors, and localities must work to resolve long-standing issues, prevent wastefulness, and effectively reform administrative procedures, he added.