Vietnam's GDP growth is expected to reach 8% this year, with a target of at least 10% next year.

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Will Vietnam’s GDP growth reach 10% next year?

On Monday, October 20, Vietnamese Prime Minister Pham Minh Chinh stated at the opening ceremony of the new session of the National Assembly that the government will set a record-breaking target of at least 10% GDP growth for 2026. At the same time, he expects this year’s GDP growth rate to be 8% and said that despite external shocks, the country’s economy has remained resilient.

Vietnam’s economy has proven strong enough to withstand external shocks and remain one of the fastest-growing economies in the world.

In the first nine months of this year, Vietnam’s GDP grew by 7.85% year-on-year. The World Bank forecasts Vietnam’s annual growth rate at 6.6%, while the International Monetary Fund estimates 6.5%. Regarding inflation, Pham Minh Chinh said inflation this year will be below 4%, which is lower than the official target of 4.5% to 5.0%.

Pham Minh Chinh also emphasized that despite the pressure of slower footwear and textile exports due to the 20% US tariff, Vietnam’s total goods trade in 2025 is still expected to reach 900 billion US dollars.

In July this year, according to Xinhua News Agency, US President Trump announced that the United States has reached a trade agreement with Vietnam. Trump said on the social media platform “Truth Social” that all Vietnamese exports to the United States will face at least a 20% tariff.

Vietnam’s economy still faces multiple challenges

Although the targets set by Pham Minh Chinh seem optimistic, the domestic economy still faces pressures relating to macroeconomic stability, volatility in the gold and real estate markets, air pollution, natural disasters, and cybercrime.

Pham Minh Chinh stated that Vietnam’s development still heavily relies on cheap labor and resources, rather than on science, technology, innovation, and digital transformation. In response to these challenges, he reiterated that Vietnam plans to sign new free trade agreements with Middle Eastern, Latin American, and African countries next year to diversify export markets.

Regarding infrastructure, Pham Minh Chinh said that Vietnam plans to start construction of a multi-billion-dollar North-South high-speed railway next year and launch satellite internet services. These measures aim to promote economic transformation and upgrading, and reduce reliance on traditional growth models.

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