In the context of a volatile global economy, Vietnam needs to maximize the exploitation of the domestic market, creating a solid driving force for growth.

Level growth The gross domestic product in the first quarter of this year was 6.93%, which is also Vietnam's highest first quarter growth rate in the past 5 years.

In the difficult context, the Government and the Prime Minister are making great efforts to achieve the growth target and are determined not to change this year's target of 8% or more.

At the Government Press Conference held last weekend, the leader of the Ministry of Finance shared that, based on the results of the first quarter, the Ministry has developed the next growth scenario for each industry and field, allocating to localities and regions.

Growth scenario to achieve target of 8% or more

To achieve an overall growth rate of 8% or more, the Ministry of Finance has built scenarios for the second quarter, the third quarter is 8.3% and the fourth quarter is 8.4%.

This scenario is higher than the original target and poses many challenges. But we are still determined to implement it, on the basis of making good use of the growth momentum of the manufacturing and processing industry in the first quarter of the year.

Mr. Do Thanh Trung - Deputy Minister of Finance - emphasized: "With the second quarter scenario, the manufacturing and processing industry will increase by about 10.1%. In addition, we also have many solutions to overcome the unsatisfactory growth contribution indicators such as mining industry, electricity and gas production... We will implement solutions to promote the current space, contributing to growth such as disbursing public investment capital, focusing more on tourism and services" .

Strong domestic consumption demand during the holidays and Tet holiday; the high number of international visitors are positive factors contributing to the trade and service sector. In the first quarter, total retail sales of goods and consumer service revenue increased by 9.9% compared to the same period last year. This is also a good increase in the past 5 years. In the context of the fluctuating global economy, we need to maximize the exploitation of the domestic market of more than 100 million people, creating a solid driving force for growth.

Ms. Nguyen Thi Huong - Director of the General Statistics Office - said: "We need to focus on changing both product quality for domestic consumers as well as the shortest and most effective way of approaching them."

To create a good foundation for growth, disbursement of public investment capital is an extremely important driving force. Prime Minister Pham Minh Chinh signed Official Dispatch No. 32 on urging the acceleration of public investment disbursement in 2025, requesting ministries, central agencies and localities to identify this as one of the top key political tasks, which need to be prioritized in leadership, direction and implementation. The goal is to strive to disburse 100% of the plan assigned by the Prime Minister.

FDI enterprises trust in the business investment environment in Vietnam

In the economic picture of the first quarter, attracting foreign direct investment was also a bright spot. Realized capital, that is, the amount of money that foreign investors actually disbursed into the economy, reached 4.96 billion USD, up 7.2% over the same period last year. This is the highest figure in the past 5 years, demonstrating investors' confidence in the business environment in Vietnam.

Most recently, the American Chamber of Commerce in Hanoi (AmCham Hanoi) and the Vietnam Federation of Commerce and Industry (VCCI) sent a letter calling on the Trump Administration to suspend the imposition of reciprocal tariffs. In the letter, the two business communities mentioned that Vietnam has reduced tariffs on 13 groups of goods, bringing practical benefits to US exporters.

Mr. Mark Gillni - President of the American Chamber of Commerce in Vietnam - said: "Tax reduction is the most timely, simple and effective policy in the current context. When the total import turnover of US goods to Vietnam is not large. I think Vietnam's recent policies show a very goodwill and timely approach. I think Vietnam has been very smart and patient in not responding and trying to analyze the moves from the US side."

Mr. Nguyen Hai Minh - Vice President of the European Business Association in Vietnam - said: "The US tightening of trade could be a boost to help Vietnam accelerate the process of transforming its export model and promote the effectiveness of its new operating apparatus. We believe that the Vietnamese Government will have an appropriate negotiation strategy. Internally, European businesses will also sit down to restructure their apparatus."

Mr. Ko Tae Yeon - Chairman of the Korean Business Association in Vietnam - said: "For us, tax is only one part when considering the decision to invest in Vietnam. More important factors are the open policy corridor, the labor force with reasonable prices, and the increasingly improved infrastructure. Therefore, we still have faith and choose to accompany Vietnam."

Simplify administrative procedures for foreign investors

In a survey of European businesses in Vietnam, when asked about the areas that Vietnam needs to improve to increase its attractiveness, after prioritizing infrastructure development, 29% of businesses suggested streamlining administrative procedures to reduce time and costs for businesses. Recently, the Government has implemented many policies.

The Prime Minister requested that this year, administrative procedures must be cut to the maximum, especially the management mindset must be shifted from "pre-inspection" to "post-inspection", combined with strengthening inspection and supervision work.

To increase FDI attraction, the Government has been perfecting many policies. Among them is the issuance of Special Investment Procedures - "Green Channel" for high-tech and strategic projects. Normally, an FDI project must carry out many procedures such as: investment policy approval, technology appraisal, environmental impact assessment report, construction procedures, fire prevention and fighting. With the "Green Channel" mechanism, these steps will be eliminated. Investors commit to comply with the provisions of the law and only need to submit one set of documents to register for an investment registration certificate. This new regulation will reduce the time for granting investment project licenses from an average of 260 days to 15 days.

Mr. Dau Anh Tuan - Deputy General Secretary of Vietnam Federation of Commerce and Industry (VCCI) - said: "The approach is very necessary. Because we want to attract many high-tech corporations to Vietnam. But how can they enter if the procedures take years, or even months? This is a huge barrier due to our own procedures. Innovating investment procedures, coordinating procedures to make them convenient, fast, and save time and costs will be our priorities to attract investment."

Experts also believe that Vietnam needs to continue reforming procedures after businesses are granted investment licenses, such as tax, customs, import and export procedures, etc.

The Government has issued Decree 182 on the Investment Support Fund, which includes annual cost support and initial investment cost support, such as up to 50% of annual costs for training Vietnamese workers. To receive support from the fund, enterprises and projects in the high-tech sector must meet specific conditions on investment capital scale, revenue or commitment to using high-quality human resources. This is the basis for Vietnam to attract more quality investment capital flows in the coming time.

Simplifying administrative procedures is not only a driving force for the FDI sector to develop but also an essential requirement for the domestic economic sector to accelerate. This is also the consistent content in the directives of the Government and the Prime Minister in recent times, especially reflected in the Program to reduce and simplify administrative procedures related to production and business activities in 2025 and 2026. The goal by next year is to reduce and simplify 100% of unnecessary investment and business conditions.