Viet Nam’s economy outpaced forecasts in the first half, with GDP growth likely to exceed projections by 0.2 to 0.3%, Minister-Chairman of the Government Office Tran Van Son said on July 3.

At a press briefing to announce the outcomes of the regular Cabinet meeting and the online conference between the Government and 34 provinces and cities, along with 3,321 communes, wards, and special zones the same day, Son said GPD growth for Q2 is estimated at 7.67%, bringing the six-month figure to 7.31%. However, updated data through June 30 suggests the GDP growth rate in the first half could higher than initially projected, driven by improving monthly indicators in production and budget revenue, stable macroeconomy, and controlled inflation rate.

The Ministry of Finance reported that the manufacturing and processing industry grew by 10% in the first half. Export performance was strong, rising by 14.4% and trade surplus estimated at 7.63 billion USD. Total retail sales of goods and consumer service revenue rose by 9.3%.

Total social investment rose by 9.8% in the first six months, while registered foreign direct investment (FDI) reached 21.5 billion USD, a year-on-year surge of 32.6%, the highest since 2009. Disbursed FDI stood at over 11.7 billion USD, marking an 8.1% increase.

Besides, the business landscape showed remarkable dynamism, with 152,700 enterprises entering and re-entering the market in the period, 20% higher than the number of enterprises exiting the market.

As challenges are on the horizon, Son said, the Government outlined several missions and measures for the final six months of the year, including closely monitoring the operations of two-tier local government model, implementing regulations on decentralisation and authority distribution to provide timely guidance and resolve local bottlenecks, ensuring smooth settlement of administrative procedures.

Maintaining macroeconomic stability must be a focus, with the State Bank of Viet Nam requested to operate rational monetary policy tools, interest rates, and exchange rates to support production and business operations while meeting the economy's capital needs.

The government is also pushing for public investment capital disbursement, promoting new growth drivers, and capitalising on the 17 signed free trade agreements while advancing new trade pacts. Son stated that concerted efforts must be made to complete the construction of at least 3,000 kilometres of expressways and over 1,000 kilometres of coastal road this year.

All ministries, sectors, and localities must work to resolve long-standing issues, prevent wastefulness, and effectively reform administrative procedures, he added.