Dear readers,

While the economic situation at home and abroad exhibited some favorable signs in the first seven months of 2025, many factors were unfavorable for Vietnam’s socio-economic development, especially complex and unpredictable events in the fierce competition between major powers, which added fuel to the tense geopolitical space and military conflicts in many regions, as well as the negative impacts from the new tariff policy of the US.

However, the socio-economic situation in Vietnam in the period can still be considered positive. At the government’s regular meeting for July, held on August 7, Prime Minister Pham Minh Chinh said “we have actively, resolutely, and synchronously deployed tasks and solutions to smoothly and effectively operate the new apparatus after the rearrangement of administrative boundaries for two-level local government; promoted economic development to reach the GDP growth target of 8.3-8.5 per cent; and proactively responded to fluctuations in global markets.”

As a result, “macro-economic stability has been maintained, inflation has been under control, major balances in the economy have been ensured; the State budget deficit, public debt, and government debt have been well controlled; and growth has been boosted, especially in the three sectors of agriculture, industry, and services,” the Prime Minister added.

Many official figures for the seven-month period highlight Vietnam’s positive economic circumstances, including $514.7 billion in import-export turnover, up 16.3 per cent year-on-year, with a $10.18 billion trade surplus, $24.09 billion in registered FDI capital, up 27.3 per cent, $13.6 billion in disbursed FDI capital, up 8.4 per cent, the Index of Industrial Production (IIP) increasing by 8.6 per cent, and 174,000 enterprises being newly-registered or resuming operations, up 22.9 per cent, among others.

The socio-economic achievements posted in the first seven months will create stronger foundations and motivation for various sectors, industries, localities, and the business community to further accelerate production and business to achieve all targets for the year.

However, Vietnam’s economy will continue to face a range of difficulties and challenges over the remaining months of 2025, including a 20 per cent tariff to be imposed on Vietnamese goods exported to the US.

Despite these difficulties and challenges, the country’s economic growth target remains unchanged. According to a direction from Prime Minister Chinh in Official Dispatch No. 128/CD-TTg, dated August 6, 2025, the government will continue to prioritize promoting growth associated with maintaining macro-economic stability, controlling inflation, ensuring major balances in the economy, and keeping the budget deficit and public debt within the limits permitted by the National Assembly, in order to record a GDP growth rate of 8.3-8.5 per cent, keep the average CPI increase for the year as a whole below 4.5 per cent, and further improve the material and spiritual lives of the people.

Our Cover Story in this edition therefore focuses on socio-economic achievements recorded in July and in the first seven months of 2025, with analysis and explanations of the causes behind both achievements and limitations, alongside recommendations and solutions for overcoming the problems in the immediate future, in order to achieve all socio-economic targets set for 2025, which is the final leg of implementing the Resolution from the 13th National Party Congress, thus creating a premise for the country to enter a “New era - The era of the nation’s rise”, starting from the 14th National Party Congress.