Vietnam's Economic Strategy for Double-Digit Growth

Prime Minister Pham Minh Chinh recently convened the first meeting of the Government Steering Committee for Macroeconomic Management and Administration in Hanoi, where he outlined ambitious economic targets for Vietnam. The government aims to achieve double-digit GDP growth by 2026 while maintaining macroeconomic stability, controlling inflation, and ensuring sustainable growth. Chinh emphasized the importance of disbursing public investment for 3,000 projects to stimulate economic activity and urged the Ministry of Industry and Trade to enhance exports and negotiate new free trade agreements with partners like the Southern Common Market (Mercosur) and the Gulf Cooperation Council (GCC).

PM calls for faster public investment disbursement, funding 3,000 projectsBanking reform to be accelerated to support national double-digit growthPosition and opportunity for Viet Nam’s economy to take off

At a year-end conference for the banking sector, Prime Minister Chinh called for accelerated banking reforms to support the economic growth target. He highlighted the need for proactive and flexible monetary policies that align with fiscal strategies to maintain stability. The State Bank of Vietnam (SBV) has kept key interest rates steady to support economic performance, while commercial banks are encouraged to reduce costs and embrace digital transformation. The Prime Minister stressed the importance of managing credit quality and non-performing loans to safeguard the banking system's integrity.

Banking reform to be accelerated to support national double-digit growthPM calls for faster public investment disbursement, funding 3,000 projects

Despite facing significant challenges, including natural disasters that caused extensive damage in 2025, Vietnam's economy demonstrated resilience. The government has implemented various strategies to ensure rapid recovery, focusing on sustainable growth through green and digital transitions. The GDP growth for 2025 is estimated at around 8%, surpassing the five-year average of approximately 6.3%. This growth reflects the government's commitment to social equity and welfare, with substantial investments in social programs and infrastructure.

Position and opportunity for Viet Nam’s economy to take off

Prime Minister Chinh stated, “Vietnam remains steadfast in its goal of maintaining macroeconomic stability, controlling inflation, and ensuring major economic balances in order to create a favorable environment for fast and sustainable development.” He reiterated the importance of institutional reforms and the need for the banking sector to lead in digital transformation and innovation.

Banking reform to be accelerated to support national double-digit growth

While the government's plans are ambitious, some critics express concerns about the feasibility of achieving double-digit growth amid global economic volatility and internal challenges. They argue that reliance on low-cost labor and natural resources may hinder sustainable development and that institutional bottlenecks need urgent attention.

Position and opportunity for Viet Nam’s economy to take off

Looking ahead, the government plans to continue its focus on institutional reform and enhancing the banking sector's capabilities to meet the demands of a rapidly changing economic landscape. The National Assembly is expected to finalize the GDP growth target of 10% or higher for 2026, marking a significant step in Vietnam's economic journey.

Banking reform to be accelerated to support national double-digit growth

• “As the Prime Minister affirmed, “the lessons learned from overcoming difficulties over 40 years of Renewal form the foundation for Viet Nam’s steadfast and consistent focus on implementing these strategic objectives.” — Prime Minister Pham Minh Chinh

Position and opportunity for Viet Nam’s economy to take off