Vietnam's economy grows 8.18% in H1, but full-year target remains challenging

Vietnam's economy is poised for significant development, having achieved a robust 8.18% GDP growth in the first half of the year, according to General Secretary and President Tô Lâm. This performance occurred amidst global economic headwinds, including the Middle East conflict and US trade policies, which have driven up oil prices, shipping costs, and production expenses, thereby increasing inflationary pressures.

Despite these challenges, the government has made notable strides. The President commended the Prime Minister and cabinet for their innovative leadership and decisive actions, which have yielded practical results. Key achievements include stabilizing the macroeconomy and controlling inflation, with the Consumer Price Index rising 4.5% on average for the first six months. Infrastructure development has seen breakthroughs, with solutions found for over 3,400 stalled projects. Furthermore, institutional reforms and administrative procedures have been streamlined, significantly cutting down compliance times and costs by approximately 53% and 55%, respectively.

Technological advancement, innovation, and digital transformation continue to progress. Cultural and social sectors receive ongoing attention, while national defense and security remain stable. Vietnam has also expanded its international relations, upgrading ties with six countries, bringing the total number of comprehensive partnership-level relations to 45.

However, achieving the year's growth target of 9.7% presents a considerable challenge, necessitating an 11.9% growth rate in the second half. President Lâm pointed out that 25 out of 34 localities failed to meet their six-month growth targets, including major cities like Hanoi and Ho Chi Minh City. He urged the government to rigorously review and reallocate capital from underutilized projects to areas with greater potential, emphasizing the need for accurate and comprehensive statistical data to inform policy decisions.