In 2025, Viet Nam's economic growth is projected to be at least 8%, and potentially higher

Accordingly, Moody’s and S&P have rated Viet Nam as one of two Asian countries with stable and positive long-term credit outlooks. The Japan External Trade Organisation (JETRO) surveys have shown Viet Nam to be the second most attractive investment destination globally and the most attractive in Asia.

Meanwhile, European Chamber of Commerce in Viet Nam (EuroCham) placed Viet Nam among the top 10 global investment destinations and expects Viet Nam’s Business Confidence Index (BCI) to continue rising in 2025, bolstered by European businesses’ confidence in Viet Nam thanks to political stability and effective administrative reforms.

However, data from the General Statistics Office (Ministry of Finance) shows that the number of businesses withdrawing from the market nationwide in the first four months of this year was about 96,500, much higher than the number of businesses entering the market, which was estimated at about 89,900.

This indicates that businesses still face many difficulties and barriers; business conditions are still complex and overlapping. In addition, compliance costs and informal expenses create heavy financial burdens, reducing competitiveness of Vietnamese enterprises compared to those in other countries in the region.

Recognising 2025 as a crucial and pivotal year for Viet Nam to create momentum toward high and sustainable economic growth, for Policies and Strategies, Party General Secretary To Lam urged greater efforts to position Viet Nam's investment environment among the top three in ASEAN within the next two to three years.

During his recent working session with representatives of the Party Central Committee’s Commission, the Party chief directed the reduction of at least 30% in the time and costs for administrative procedures and the abolition of at least 30% of unnecessary business conditions.

Reducing administrative processing time by at least 30% will help businesses save time and resources, thus improving operational efficiency and competitiveness. Meanwhile, removing at least 30% of unnecessary business conditions will create a more open business environment, attract new market entrants, and foster competition.

This marks a major shift in mindset and awareness of the importance of improving the business environment and comprehensive institutional reform. The aim is to achieve 8% economic growth this year, laying the foundation for double-digit growth in the coming years after Viet Nam recorded 7.1% growth in 2024.

At the one-door administrative unit of the Public Administration Service Center in Lao Cai province (Photo: VNA)

Facts have shown that although Viet Nam has been reducing business conditions for many years, the process has been slow and ineffective, even slowing down recently.

According to the national database of legal documents, Viet Nam currently has about 6,200 business conditions and over 5,000 administrative procedures in key sectors. The request of cutting 30% means eliminating more than 2,000 business conditions and 1,500 administrative procedures this year.

Obviously, this is a massive and challenging task, especially amidst the government’s streamlining efforts. It requires ministries, sectors, and localities to act quickly and decisively with a genuine and effective mindset to unlock and promote growth drivers and realise the country’s economic development goals.

Practically, this reduction should not be limited to reviewing and cutting the number of legal documents but also proposing to remove industries that can be effectively managed by other measures, thus prioritising cutting procedures with high costs but low management value.

Efforts should focus on promoting information technology applications to interconnect and share data among state agencies, thus eliminating redundant procedures and paperwork, and reducing administrative processing time. It is recommended to abolish unnecessary business conditions where more effective management measures can be applied.

Moreover, from central to local levels, management thinking must shift from control to support businesses' operations, with centre should be placed on businesses and people, treating procedure reduction as a strategic national task rather than a formality.

Decentralisation and delegation are also needed to improve implementation efficiency and promptly remove barriers in investment and business activities when reported. This will ensure reformed policies are practical, effectively implemented, and widely supported by the business community.

It is also crucial to eye reform as a top political priority, with strict inspection and handling of agencies and officials who deliberately create difficulties or generate unauthorised procedures.

Once these measures are implemented comprehensively and effectively, they will not only improve the business environment but also create a solid foundation for the country’s next development phase aiming for double-digit growth.