Vietnam H1 GDP growth highest since 2011

Vietnam's GDP grew by 7.52 percent in the first half of 2025 compared to the same period last year, the highest H1 growth rate recorded in 14 years, according to the Ministry of Finance's National Statistics Office (NSO).

In addition to robust GDP growth, the economy also set records across several key economic indicators during the first six months of the year, the office said.

General Statistics Office Director Nguyễn Thị Hương said the global situation in the first half of 2025 remained complex and difficult to forecast, especially due to US tariff policies and responses from other countries.

Rising geopolitical instability and escalating military conflicts across several nations had adversely affected global economic growth. Consequently, many international organisations had downgraded their global growth forecasts for 2025 from earlier projections, Hương said.

Amid these challenges, Vietnam's 7.52 percent GDP growth stood out as a bright spot, demonstrating the economy's enduring resilience.

Speaking at a press conference in Hà Nội on July 5, Hương said that the strong economic performance reflected the determination, coordinated efforts, and decisive actions of the entire political system in managing and advancing socio-economic development amid ongoing regional and global uncertainties.

Dr Võ Trí Thành, an economist, attributed the optimistic economic results in the first half of the year to unprecedented administrative reforms as a key driver.

Thành told thanhnien.vn that the Vietnamese economy had never undergone such drastic and wide-reaching administrative reform as in recent months.

"This is a revolution, and initial growth figures already reflect remarkable outcomes," he said.

He cited the nearly 15 percent growth in administrative support services over the past six months as a clear indicator of this breakthrough.

"Growth in the field of administrative reform at this scale is rare. Reorganisation of the state management apparatus has significantly contributed to the economy's strong performance," he added.

Economist Trần Anh Tùng at Hồ Chí Minh City University of Economics and Finance said GDP grew strongly in H1 thanks to three aspects - FDI, exports and the tourism and service sector.

"Of these three factors, FDI and exports are the main driving force thanks to the spillover effect on production and labour attraction, while tourism is a supporting factor," he said.

Tùng outlined four reasons affecting the sudden growth of the above pillars. First, the monetary policy of the State Bank of Vietnam since the beginning of the year had been effective in keeping the exchange rate stable and controlling inflation reasonably, thereby strengthening consumer confidence and keeping purchasing power from being eroded.

The second key driver, he said, was the structural shift in production towards higher value-added manufacturing and processing industries, along with improved localisation rates - both of which had significantly boosted overall GDP.

The third factor was the accelerated disbursement of public investment, which reached approximately 43 percent of the annual plan. This provided a strong push to GDP growth through the advancement of major transport infrastructure projects.

Finally, new-generation free trade agreements continued to deliver positive results, with many businesses leveraging tariff incentives to expand exports and attract fresh investment.

"The combination of these factors has laid a solid foundation for the economy to exceed earlier growth forecasts," Tùng added.