VIETNAM TAKES STEPS TO REALISE 8.3–8.5% GROWTH TARGET IN 2025
Việt Nam is stepping up efforts to achieve an ambitious GDP growth target of 8.3–8.5 per cent this year, despite global uncertainties and divergent economic forecasts. Authorities are focusing on boosting traditional growth drivers such as investment, consumption and exports while implementing a broad array of policy measures to maintain economic momentum.
CREDIT GROWTH AND PROFITABILITY IMPROVE AT MANY BANKS
The common highlight in banks’ reports in the first half of 2025 showed a more stable and sustainable growth cycle in the banking industry. Credit expansion, improved profitability, and tighter control of asset quality are collectively laying a solid foundation for a strong performance in the second half of the year. According to the State Bank of Vietnam (SBV), as of June 30, 2025, total outstanding credit of the banking system exceeded VND17.2 quadrillion, up 9.9% compared to the end of 2024 and 19.32% year on year.
STEADY RECOVERY CONTINUES IN HCM CITY HOUSING MARKET
The HCM City real estate market is showing early signs of recovery, with new supply prospects boosted by streamlined legal procedures and lower bank lending rates, according to the Department of Construction. City authorities have made coordinated efforts to remove obstacles and revive delayed projects. A report by the department showed that 14 housing projects were approved in the second quarter of the year, including nine commercial, one social and three subject to land use right auctions.
CATALYST FOR INDUSTRIAL REAL ESTATE DEVELOPMENT
The consolidation of provincial/municipal administrative boundaries in Vietnam is expected to deliver a powerful impetus to the industrial real estate market, unlocking opportunities to establish expansive industrial-urban zones, boost competitiveness and attract foreign direct investment (FDI). Far beyond a mere redrawing of geographical lines, the merger of administrative units aims to streamline governance structures, reduce planning fragmentation and enhance inter-provincial competitiveness.
PEPPER EXPORTS EXPECTED TO REBOUND IN H2 ON RISING PRICES
Việt Nam’s pepper exports are expected to recover strongly in the second half of this year on improving global demand and potential changes in the US tax policies, according to the Việt Nam Pepper and Spice Association. Hoàn Thị Liên, the association’s President, said at a mid-year review conference on Wednesday that exports have been slow since the beginning of this year, largely due to uncertainty over the US tariff policies.
JUMP IN INFRASTRUCTURE SPENDING OFFERS BRIGHT PROSPECTS FOR CONTRACTORS
According to the government's public investment plan, Vietnam aims to have in place 3,000 km of expressways this year, and an additional 2,000 km by 2030. In the railway sector, Hanoi has planned 10 metro lines with a combined length of 417.8 km, two of which, Nam Thang Long-Tran Hung Dao and Van Cao-Hoa Lac, are scheduled to begin construction in 2025.
STRONG SCOPE FOR ADDED AGRO-EXPORTS
During a business trip to Brazil in early July to attend the expanded BRICS Summit and conduct bilateral engagements, Prime Minister Pham Minh Chinh met with Brazilian Minister of Agriculture Carlos Favaro to discuss measures to boost agricultural trade between the two countries. PM Chinh proposed that the two countries’ agriculture ministries establish a joint working group to implement high-level commitments effectively.
CHINA EMERGES AS VIETNAM’S TOP SHRIMP IMPORTER
According to the Vietnam Association of Seafood Exporters and Producers, Vietnam’s shrimp exports have shown a strong recovery after a period of stagnation, driven mainly by whiteleg shrimp, which accounts for over 60 per cent of total volume, followed by black tiger shrimp and other varieties. The other shrimp segment witnessed the highest growth at 124 per cent, reflecting increasing demand in niche and premium markets.
