Vietnam expects GDP growth of 8% this year, with a target of at least 10% next year

Vietnam's GDP growth rate is expected to reach 10% next year? On Monday, October 20, Vietnamese Prime Minister Pham Minh Chinh stated at the opening ceremony of the new National Assembly session that the government will set a record target of at least 10% GDP growth by 2026. He also projected this year's GDP growth rate to be 8%, noting that despite facing external shocks, the country's economy continues to demonstrate resilience. The Vietnamese economy has proven strong enough to withstand external shocks and maintain its position as 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 predicts Vietnam's growth rate to be 6.6% this year, while the International Monetary Fund estimates it at 6.5%. Regarding inflation, Pham Minh Chinh stated that this year's inflation rate will be below 4%, lower than the official target of 4.5% to 5.0%. Pham Minh Chinh also emphasized that despite the pressure from the 20% tariffs imposed by the United States leading to a slowdown in footwear and textile exports, Vietnam's merchandise trade volume is still expected to reach $900 billion by 2025. In July this year, according to Xinhua News Agency, U.S. President Trump stated that the United States had reached a trade agreement with Vietnam. Trump posted on social media "Truth Social" that all goods exported from Vietnam to the U.S. would face at least a 20% tariff. Vietnam's economy still faces multiple challenges Despite the optimistic targets set by Pham Minh Chinh, the domestic economy still faces challenges such as macroeconomic stability pressures, fluctuations 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 science, technology, innovation, and digital transformation. To address these challenges, he reiterated that Vietnam plans to sign new free trade agreements with countries in the Middle East, Latin America, and Africa next year to diversify its export markets. In terms of infrastructure construction, Pham Minh Chinh announced that Vietnam plans to launch the construction of a multi-billion dollar North-South high-speed railway next year and introduce satellite internet services. These initiatives aim to promote economic transformation and reduce reliance on traditional growth models