Mr. Hoang Nam Tien, Vice Chairman of the University Council at FPT University

During the “Doi Moi” (Renovation) period, Vietnam’s economic growth surpassed 9 per cent in 1995 and 1996 before declining. Looking ahead now, however, one critical factor that could drive Vietnam towards double-digit growth is institutional reform, which would unlock the full potential of its private sector.

Relying solely on public investment and FDI could sustain growth at around 8-9 per cent, but surpassing 10 per cent requires unleashing the power of private enterprises.

Exports have long been a key driver of Vietnam’s economic expansion. As the economy has grown, several Vietnamese industries, such as textiles and agriculture, have flourished. In 2024, durian exports alone brought in nearly $3 billion, while FPT earned $1 billion annually from software exports. These successes reflect growing confidence in Vietnam’s economic potential, and many more opportunities remain untapped.

This confidence was not always present. In 2015, when FPT set a goal of reaching $1 billion in annual export revenue, many within the company doubted whether it was achievable. By the end of 2023, however, that milestone had been reached. Today, $1 billion is no longer considered an ambitious target, and the company is aiming for $5 billion in software export revenue by 2030. This is just one example, and in the years ahead thousands of Vietnamese businesses could generate revenues in the hundreds of millions to billions of dollars.

In the future, Vietnam’s trade surplus with the US may no longer be driven mainly by textiles and footwear but by high-tech industries such as software exports. With 2030 approaching, FPT has already committed to its $5 billion export target, and the next generation of entrepreneurs could add tens of billions more to private sector exports.

Achieving such transformative growth requires that businesses evolve. At FPT, we recognized that reaching $5 billion in exports through human labor alone would require 200,000 employees. However, technology has changed the equation, and many companies are adapting to this shift.

AI has advanced rapidly. In this new era, success will depend on individuals who can think creatively and leverage technology for innovation. This presents a unique opportunity for Vietnam’s younger generation, those who have grown up with AI and digital tools, to drive breakthrough growth.

AI is a game-changer, offering countries like Vietnam significant advantages. Vietnam’s young, tech-savvy workforce is poised to thrive. As digital transformation accelerates and AI becomes more deeply integrated into business and industry, Vietnam is in a prime position to capitalize on this shift.

 

Mr. Phan Le Thanh Long, Founder and Director at the AFA Group

The year 2024 was a challenging one for private enterprises. However, stepping into 2025, thanks to the economic growth policies set forth by the Party and the government, alongside institutional reform and supportive policies, private enterprises are now presented with significant opportunities for growth.

Large enterprises have long contributed substantially to Vietnam’s economic expansion. With their competitive advantages, they can leap ahead and capitalize on strategic, high-growth sectors such as semiconductor technology and software development.

For small and medium-sized enterprises (SMEs), 2025 marks a pivotal year in transformation, particularly in how they approach market expansion. With the rise of the internet and AI, geographical boundaries are becoming increasingly blurred, meaning that businesses must now look beyond the domestic market and seize international opportunities.

To achieve this, companies must focus on effective governance and building a solid business model. Only with a robust management structure, spanning from the Board of Directors and the Executive Board to operational oversight and control, can businesses navigate their path to sustainable growth.

With institutional bottlenecks being addressed and the Party and government demonstrating a strong commitment to private sector development, businesses now face both a major opportunity and a turning point. Transparency, public disclosure, and governance quality must be strengthened to align with this new era.

Ultimately, governance plays a critical role in meeting the demands of capital markets, attracting investment, and securing foreign capital. As Vietnam works towards an upgrade in its market classification, governance will be a key trend affecting all enterprises.

Looking at governance reports from 2024 assessing 2023, there remains a gap compared to ASEAN standards. However, the transition year of 2025 is expected to bring significant improvements.

Sustainable development is emerging as a critical criterion for many Vietnamese enterprises. It is now embedded in multiple areas, particularly in credit ratings. Whether raising capital through equity or loans, companies must meet sustainability requirements to access funding.

Moreover, the structure of corporate boards in Vietnam has evolved. Businesses are now placing greater emphasis on governance, yet a key challenge remains: a shortage of qualified personnel, particularly in corporate management. To address this, companies must develop a professional, independent, and specialized governance workforce, moving beyond the past practice of boards and executive teams merely holding capital without actively engaging in management.

As AI continues to advance, businesses can leverage this technology to boost productivity and accelerate decision-making. This is an irreversible trend, and enterprises across all industries must adapt or risk being left behind. When SME owners recognize the opportunities, take bold steps, and invest the necessary resources, they will drive private investment and contribute to GDP growth.

 

Mr. Nguyen Thanh Ha, Managing Partner of SBLaw

In 2025 and beyond, numerous tax law proposals will be presented to the National Assembly for discussion and approval. As the economy faces challenges such as inflation, supply chain disruptions, and weakening global demand, tax policies must be adjusted carefully to support businesses and consumers while ensuring stable State budget revenue. To achieve these goals, three key priorities should be considered.

First, tax policies should serve as a catalyst for investment. Reducing corporate income tax or introducing appropriate tax incentives can provide businesses with additional resources to expand production, adopt new technologies, and create jobs. This becomes even more critical in the post-Covid-19 recovery phase and amid ongoing geopolitical uncertainties. Encouraging investment in strategic sectors such as infrastructure, high technology, and education will not only drive short-term economic growth but also lay a solid foundation for long-term sustainable development.

Second, supporting consumer purchasing power is equally important. Measures such as reducing value added tax (VAT) rates or adjusting personal income tax rates can lower the cost of goods, increase disposable income, and stimulate domestic consumption. A rise in consumer spending will drive production, create a positive economic cycle, and contribute to GDP growth. However, tax adjustments must be carefully balanced to prevent negative impacts on State revenue and ensure fiscal sustainability in the long run.

And third, a comprehensive approach is essential when refining tax policies. Evaluating the impact not only from an economic perspective but also from a social standpoint is crucial to ensuring fairness, transparency, and a stable, competitive business environment. Engaging experts, businesses, and the public in policy discussions will help shape tax policies that not only address immediate challenges but also foster long-term sustainable growth.

In a rapidly-changing and unpredictable economic landscape, tax laws should provide a flexible framework, allowing the government to adjust tax rates in response to real-time economic conditions.

During the Covid-19 pandemic, many countries and territories quickly adjusted tax rates to support businesses and consumers. Vietnam implemented a VAT reduction, from 10 per cent to 8 per cent, to boost consumption. If such adjustments had required a full legislative amendment, the process could have taken months or even years, while businesses needed immediate relief. Similarly, when global fuel prices surged, some countries quickly lowered environmental taxes on fuel to control inflation. Without a flexible mechanism, tax policies risk becoming slow and ineffective in addressing economic realities.

The key concern is the extent of authority granted to the government. Taxation is not just a revenue source but also directly affects businesses and individuals. Allowing the government to adjust tax rates without limitations could create policy instability, making it difficult for businesses to anticipate changes and plan long-term strategies. If, for example, the government had the power to increase corporate income tax rates from 20 per cent to 30 per cent through a decree, it could cause significant disruption in the business environment and deter investment.

A balanced approach would be to set a tax rate range within the law, enabling the government to make adjustments within this predetermined framework. Any changes beyond this range should require National Assembly approval. For instance, corporate income tax could be legislated within a 15-25 per cent range, allowing adjustments within these limits. If a rate increase to 30 per cent or a reduction below 15 per cent become necessary, this would require legislative approval. Such an approach ensures flexibility in policy implementation while maintaining transparency and stability in the business environment.

 

Ms. Dinh Thu Huong, Deputy General Director of the Net Zero Vietnam JSC

The government’s issuance of Decision No. 232/QD-TTg on January 24, 2025, approving a project to develop the country’s carbon market, reflects Vietnam’s responsiveness to investors’ views on the growth potential of the carbon credit market.

Though Vietnam’s carbon credit exchange is operational, it will initially function on a pilot scale from 2025, with this potentially extending until 2027 or 2028 before integrating with the global exchange in 2029-2030. Despite its pilot status, the establishment of this exchange has already drawn attention from both domestic and international businesses to the potential of Vietnam’s carbon credit market.

Moreover, the forthcoming requirement for businesses in Vietnam to comply with government-mandated emissions quotas presents an opportunity for the carbon credit trading market to expand. Beyond achieving the net-zero target by 2050, the development of the carbon credit market is an essential step for Vietnam to align with the global green transition.

Building a domestic carbon credit trading market will also foster the emergence of an ecosystem of businesses operating in this sector, further contributing to economic growth. In the past, many Vietnamese companies seeking to trade carbon credits had to rely on foreign service providers due to the absence of local standards or domestic entities responsible for establishing compliance criteria.

Without domestic standards, Vietnamese businesses will face challenges in participating in the international carbon credit trading market. Over the past year, the World Bank has purchased a number of forest credits from Vietnam, a type of emissions allowance with a lower value than carbon credits, at just $3-4 per credit. Once national standards are established and internationally recognized, Vietnam’s carbon credit prices are expected to rise significantly. However, achieving this goal will require time and substantial investment.

Vietnam has the potential to generate significant economic benefits from carbon credit trading, especially as achieving net-zero is a global priority. However, before engaging in the global exchange, Vietnam must first secure sufficient carbon credits to meet its Nationally Determined Contribution (NDC) emission reduction targets.

Once the NDC target is met, Vietnam can supply carbon credits to major emitting economies such as the US, China, India, and Russia. Some developing countries are now leveraging their vast forest resources to profit from carbon credit trading. Vietnam cannot afford to stay out of this game.

 

Mr. Nguyen Minh Tuan, CEO of AFA Capital

To ensure GDP growth reaches 8 per cent in 2025 while maintaining Vietnam’s long-term economic momentum, capital remains a key factor.

In this context, the non-State sector (or the private sector) plays a crucial role. Currently, the private sector contributes nearly 45 per cent of national GDP and accounts for over 40 per cent of total disbursed social investment capital.

However, private sector investment growth has shown signs of slowing in recent years. From 2015 to now, private investment in Vietnam has maintained an average annual growth rate of approximately 17.08 per cent. But, by 2024, this figure had declined sharply, to 6.85 per cent, with 2023 recording an even lower rate, of just 2.71 per cent. This decline clearly reflects the challenges facing the private sector and indicates a weakening investment drive.

Looking at the broader picture of total social investment growth, private investment appears to be a misaligned cog in the economic engine, unable to function smoothly to generate strong economic momentum. In this context, stimulating private investment is not just an important task but a decisive factor for Vietnam’s overall economic growth targets in the time to come.

To achieve the government’s 8 per cent GDP growth target this year, Vietnam must focus not only on accelerating public investment and attracting FDI but also on boosting private investment. According to projections, investment from this sector needs to reach at least VND2,300 trillion ($92 billion), equivalent to 7.7 per cent growth compared to 2024. This goal will require a series of practical support policies to create favorable conditions for the private sector to maximize its potential.

One key solution is to introduce a dedicated resolution aimed at fostering the sustainable development of the private sector. At the same time, the government must continue to significantly improve the investment environment, simplify administrative procedures, enhance transparency, and minimize legal barriers to enable private enterprises to expand and operate more efficiently.

In reality, if Vietnam can establish a solid institutional framework and create a favorable business environment, the private sector will undoubtedly thrive. A clear testament to this is the current generation of young entrepreneurs who are not only active domestically but also engaged in the global economy, present in developed markets, and investing in various sectors in Vietnam. More young entrepreneurs are viewing Vietnam as an ideal destination for wealth accumulation and business ambitions.

Therefore, with a well-structured institutional framework that encourages innovation, promotes private sector development, and ensures sustainable growth, achieving a GDP growth rate of 8-10 per cent is entirely feasible for Vietnam.