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VIETNAM ECONOMIC NEWS INSIGHT & RECAP - DECEMBER 2025
Vietnam closed 2025 with an impressive economic performance, exceeding initial targets and demonstrating the resilience of its growth model. Full-year GDP expanded by 8.02% supported by a combination of government-led stimulus, stable domestic production and consumption, and continued strength in key export sectors amid ongoing external uncertainties. Throughout 2025, policy efforts, which focused on accelerating public investment, easing administrative and regulatory bottlenecks, and advancing structural reforms, contributed significantly to economic expansion. At the same time, industrial production, particularly manufacturing, remained the primary engine of expansion, while FDI inflows stayed strong, reflecting continued investor confidence in Vietnam's manufacturing prospects. Moreover, CPI inflation remained moderate at 3.31%, well below the target, underscoring effective policy coordination in supporting growth while maintaining price stability. Nevertheless, 2025 was not without frictions, with uneven global demand, persistent trade uncertainties, and a more selective FDI landscape shaping the external backdrop.
As Vietnam looks toward 2026, the focus is on sustaining high growth while enhancing growth quality and global integration, building on the momentum of 2025. The National Assembly's approval of a GDP growth target of 10% or above reflects both ambition and a strategic push toward technological upgrading, industrial modernization, and workforce development. This direction is being reinforced by ongoing reforms to improve the business environment and policy coordination, alongside the public investment in major infrastructure projects such as the North-South expressway network, Long Thanh International Airport, and key urban and logistics developments. Alongside these efforts, initiatives such as the national semiconductor pilot production centre signal Vietnam's early move to embed itself more firmly in global high-tech supply chains. Overall, by aligning investment, policy, and talent to support innovation-driven sectors and strengthen productivity, Vietnam can advance its pursuit of double-digit growth in 2026 and reinforce the foundations for long-term development.
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