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2025 to set foundations for sustainable growth
vietnamnews - 1/16/2025 9:24:09 AM
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2025 is pivotal for laying the foundation for Vietnam's double-digit growth plan (2026-2030) and concludes the 2021-2025 development plan, with industry leaders sharing insights on economic prospects and investment trends.
 
 
The year 2025 marks a pivotal period of acceleration and breakthroughs, laying the foundation for the socioeconomic development plan aimed at achieving double-digit growth from 2026 to 2030. It is also the final year of the 2021-2025 five-year development plan. Việt Nam News reporters speak with industry leaders to gather their insights on the national economy's prospects and investment trends in their respective sectors.
 
Đinh Hoài Nam, Director - Head of Business Development and Commercial, SLP Vietnam
 
 
Đinh Hoài Nam, Director - Head of Business Development and Commercial, SLP Vietnam
 
Vietnam's economy is forecast to grow by 6.5 per cent in 2025, supported by robust foreign direct investment (FDI) and industrial expansion. However, the Vietnamese government has set an ambitious GDP growth target of 8-10 per cent for 2025, reflecting strong confidence in the country’s ability to sustain its economic momentum. This optimism is underpinned by robust FDI inflows, continued industrial expansion, and the government's proactive economic policies.
 
Vietnam remains a key destination for global investors, with high-tech manufacturing, industrial real estate, and logistics benefiting from trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership. Việt Nam's industrial sector continues to pull in significant FDI, with the government providing incentives to high-tech industries like semiconductors, AI, and renewable energy.
 
Digital transformation, including Industry 4.0 adoption, is expected to enhance productivity, while the growing middle class will boost domestic consumption. Despite challenges such as global uncertainties and workforce upskilling, Vietnam’s economic resilience and strategic policies ensure strong prospects for 2025, with manufacturing, logistics, and green energy at the forefront of development.
 
As a leading warehouse developer, SLP Vietnam foresees strong growth in the industrial property market in 2025. The booming e-commerce sector, projected to grow at an annual rate of 20 per cent, will drive demand for modern warehouses. FDI inflows, expected to exceed US$30 billion, will support manufacturing sectors such as electronics and green energy, increasing the need for industrial spaces.
 
SLP Vietnam will leverage its leadership by developing LEED-certified, energy-efficient warehouses to meet growing sustainability demands. SLP will continue our development on our land bank to accommodate the demand from for both warehouse and manufacturing space. Our strategically located warehouses across key industrial hubs and emerging provinces provide accessibility for diverse industries. By delivering sustainable, technology-driven solutions, SLP is positioned to lead Việt Nam’s industrial property growth in 2025.
 
Chang Bok-sang, president and CEO of CJ Group Vietnam
 
 
Chang Bok-sang, president and CEO of CJ Group Vietnam
 
Vietnam’s economy achieved an impressive GDP growth rate of 7.09 per cent in 2024, with significant accomplishments in the trade and tourism sectors. Building on this success, Vietnamese Prime Minister Phạm Minh Chính has announced an ambitious GDP growth target of 8 per cent for 2025. This declaration reflects the government’s strong commitment to driving economic development in the coming year.
 
However, there are notable challenges on the horizon. Global economic uncertainties, including potential volatility tied to US policy under the Trump administration and ongoing regional conflicts, are expected to create a difficult economic environment. In this context, the role of the Vietnamese government will be more important than ever to ensure sustainable growth for 2025.
 
I think key strategies will likely include the effective expansion of government expenditures and the development of policies to stimulate private consumption. These measures are expected to foster positive changes across multiple sectors, helping Vietnam navigate through external uncertainties and maintain its growth trajectory.
 
The challenging economic environment in 2025 will likely impact CJ Group’s diverse business sectors, including food, logistics and entertainment.
 
In the business to consumer (B2C) sector, weakened consumer confidence and shifting consumption patterns are already observable. Adapting to these changes will require CJ to implement innovative and flexible strategies to sustain its market position and meet consumer needs effectively.
 
In the business to business (B2B) sector, Vietnam’s accelerated integration into the global economy has led to the  emergence of foreign direct investment (FDI) competitors from various countries into the Vietnamese market. This intensifying competition poses a challenge for CJ to rebuild its superior business capabilities quickly to maintain its competitive edge.
 
Despite these expected challenges, CJ considers 2025 as an opportunity to reinforce its foundation for long-term sustainable growth. We will achieve this by fostering consensus among all members regarding our group’s strategic direction, cultivating an innovative mindset and strengthening internal processes. Ultimately, we aim to build stronger, more agile execution capabilities for the ever-changing market.
 
Katharina Geppert, Managing Director of MSD Vietnam
 
 
Katharina Geppert, Managing Director of MSD Vietnam
 
2024 was a rare year in which all 15 key economic targets set by the Government were achieved, with GDP growth exceeding 7 per cent.
 
I believe that in 2025 Vietnam will continue to attract investment from businesses and international investors, as many experts have predicted, and will remain among the top countries for investment.
 
The Government’s commitment to amending laws to remove barriers is evident. Resolution 57 of the Politburo is considered the “Resolution for liberating scientific thinking” to achieve breakthroughs in the development of science, technology, innovation, digital transformation, and international cooperation, serving as a foundation for sustainable development.
 
The Government has set ambitious but achievable economic goals and clearly identified priority sectors in which Việt Nam has strengths, such as semiconductors and AI. The pharmaceutical industry is no exception to this trend.
 
The Government’s strategic orientation will undoubtedly foster Vietnam’s productivity, competitiveness and deeper integration into the global technology value chain. But it is crucial to ensure that this political will is consistently translated into effective daily execution at all levels.
 
I feel fortunate to continue my tenure in Vietnam this year and in the years to come to witness a new era for the country – “an era of rising prosperity, civiliation, and national wealth.”
 
Many experts are optimistic about the prospects of the pharmaceutical industry in 2025 since Việt Nam is among the countries with the fastest growing pharmaceutical markets globally.
 
With a population surpassing 101 million and a rapidly ageing demographic, the demand for pharmaceuticals and healthcare continues to rise.
 
Although the average life expectancy in Vietnam is high, health quality remains poor, with an average of 14 years of living with illnesses.
 
Moreover, 73 per cent of the elderly population does not have retirement pensions, according to the 4th National Geriatrics Conference held in November 2023.
 
These challenges will drive stronger growth in the pharmaceutical sector, attracting investments from both foreign and domestic companies.
 
The recent changes to the pharmaceutical law create opportunities for new drugs to enter the Vietnamese market faster.
 
At the same time local enterprises are investing in upgrading their plants to produce more speciality medicines to meet domestic demand or collaborate for outsourcing and technology transfer for patented drugs.
 
However, these positive developments must translate into tangible benefits for Vietnamese patients.
 
With the Government’s increased focus on the healthcare sector, I am confident they will establish processes to ensure the timely inclusion of these new products in the reimbursement list and allocate appropriate Government funding.
 
The market structure is also shifting from traditional chemical-based drugs to biological and biosimilar drugs, a trend that experts predict will continue to grow strongly.
 
During its 8th session (October 2024) the National Assembly passed amendments to two key laws related to the pharmaceutical and healthcare sectors: the Pharmaceutical Law and the Health Insurance Law.
 
Adjustments and supplements to the Pharmaceutical Law and support policies provide clear directions for foreign investment in the sector. Notably, the Pharmaceutical Law has introduced for the first time a reliance mechanism for drug registration. We sincerely appreciate the Government and Ministry of Health for involving the industry association throughout the process of revising these laws.
 
Kim Thiên Quang, CEO, Maybank Investment Bank
 
 
Kim Thiên Quang, CEO, Maybank Investment Bank
 
Vietnam's economy is poised for sustained and robust growth, with GDP projected to grow by 6.5 - 7 per cent a year in the baseline scenario for 2025.
 
In a more optimistic scenario, GDP growth could exceed 8 per cent, driven by rising global demand, accelerated infrastructure investment and a strong rebound in domestic consumer confidence.
 
The key drivers of growth can be identified as follows.
 
Vietnam is likely to continue focusing on attracting foreign direct investment, especially in technology, manufacturing and green energy.
 
The Government’s push to integrate more deeply into global value chains, including by strengthening partnerships under agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and EU-Vietnam Free Trade Agreement, will remain a key policy driver.
 
The digital landscape is evolving rapidly, bolstered by Government support.
 
E-commerce and fintech are expected to be the primary drivers of the country’s digital economy, capitalising on a growing internet user base and increasing adoption of digital services.
 
Green growth and renewable energy are set to become a major focus with the clear policy direction from the government. The Ministry of Industry and Trade wants 30 per cent of Vietnam's energy capacity to come from renewable sources by 2030, presenting significant investment opportunities in the sector.
 
However, the growth prospects may be tempered by external factors. Potential policy changes under the incoming US administration, particularly in trade, fiscal and immigration policies, could disrupt regional economic stability, including in Vietnam.
 
Domestic challenges such as climate change and an ageing population are also expected to exert pressure on the nation's economic trajectory.
 
In terms of investment trends, we foresee continued growth in sustainable and innovative sectors, with a strong focus on green investment and green finance. Infrastructure is set for robust growth, fuelled by government spending on critical projects, including those that support environmental sustainability.
 
High-tech manufacturing and digital infrastructure will attract growing foreign direct investment as global companies seek cost-efficient and stable production hubs with a focus on sustainability.
 
The equity market is poised for promising growth, with the VN-Index potentially reaching 1,500 points by the end of 2025 in an optimistic scenario, contingent on Việt Nam’s market upgrade.
 
Vietnam offers foreign investors distinct advantages, including a youthful workforce, a favourable trade network underpinned by 15 free trade agreements and competitive production costs.
 
However, challenges such as regulatory intricacies, infrastructure bottlenecks and global geopolitical shifts will require strategic adaptability.
 
As a 100 per cent foreign-owned securities company, our focus in 2025 will be on three core areas: environmental, social, and governance and green finance; technology-driven client experience; and strategic advisory services.
 
By aligning our strategies with market opportunities and addressing emerging challenges, we are committed to fostering a transparent, inclusive and resilient financial market in Vietnam. — VNS
 
Read original article here
 
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