A Robust Start to Q1: Demonstrating Government’s Effective Direction and Ministries’ Swift Action
The National Statistics Office (NSO) under the Ministry of Finance reported an estimated public investment capital disbursement of VND116.8 trillion for Q1/2025, reflecting a significant 13.5% of the annual plan. This figure surpasses the same period in 2024 by 19.8%, showcasing a strong start to the year. The disbursement rate has been on an upward trajectory since 2023, with a notable increase from 12.5% in Q1/2024 to 13.5% in Q1/2025.
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| Q1/2025 Public Investment Disbursement Surges by Nearly 20% Year-on-Year |
Nguyen Thi Huong, Director-General of the NSO, attributed this positive development to the strong direction provided by the Government and the early implementation by ministries and localities. This collaborative effort has resulted in a gradual unlocking of public investment capital, a key driver of economic growth.
Echoing this sentiment, Phi Thi Huong Nga, Head of the NSO’s Industry and Construction Statistics Department, emphasized the Government’s recognition of public investment as a pivotal growth enabler for 2025. It boosts aggregate demand, encourages private sector investment, and mobilizes social resources, all of which are crucial in the face of global uncertainties and domestic economic challenges.
To further accelerate disbursement, the Government and the Prime Minister have issued directives such as Directive 16/CD-TTg (February 18, 2025) and Decision 523/QD-TTg (March 6, 2025). These aim to expedite the allocation and disbursement of public investment capital, with a target of disbursing over 95% of the 2025 public investment plan.
Striving for a 95% Disbursement: Strategies for Success
Despite the impressive Q1/2025 results, public investment disbursement needs further acceleration to meet Vietnam’s ambitious 95% disbursement target for 2025. Le Tien Dung from the Ministry of Finance’s Department of Investment attributed the slow disbursement to shortcomings in mechanisms and policies, particularly those related to the Law on Public Investment and the State Budget Law.
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| Vietnam Targets a 95% Disbursement Rate of Public Investment for 2025 to Bolster Economic Growth |
To achieve this target, Phi Thi Huong Nga recommended several key strategies. These include promptly allocating the 2025 public investment plan to specific projects, in line with the State Budget Law and the Law on Public Investment. Additionally, project owners should be directed to immediately implement projects with allocated capital and accelerate disbursement for ongoing and transitional projects.
Nga also emphasized the need to expedite critical and urgent projects that can be completed within 2025, ensuring proper investment preparation and increasing the accountability of decision-makers. Ministries, sectors, and localities should develop plans to secure timely and sufficient construction materials, especially for significant transport projects. Monitoring fluctuations in the construction material market and speeding up land clearance and compensation approvals are also crucial steps.
| To support this ambitious goal, Prime Minister Pham Minh Chinh established seven task forces led by Deputy Prime Ministers through Decision 523/QD-TTg on March 6, 2025. These task forces are working closely with localities to enhance public investment capital disbursement, aiming for a GDP growth rate of 8% or higher in 2025. |
The Steel Industry’s Search for Solutions Following Tariff Turmoil
Amid the United States’ tariff turmoil, Vietnamese steel has found itself in a unique position, having already weathered a 25% tariff since 2018. However, this exclusion from the recent storm does not guarantee smooth sailing. With other countries facing barriers to the US market, there is a risk of a flood of low-priced steel being redirected to Asia and Vietnam, which could significantly impact the domestic steel industry.
Hanoi: Hosting the Green Growth Summit this Month
Vietnam’s hosting of the fourth Partnership for Green Growth and Global Goals 2030 (P4G) Summit underscores the country’s unwavering commitment to tackling climate change, reducing emissions, and transforming its growth trajectory with the support of the international community.
Hong Kong: Facilitating the Vietnam–China Financial Nexus
Hong Kong is enhancing its position as a pivotal financial link between Vietnam and China, utilizing its status as a global financial hub to strengthen cross-border collaboration. This was emphasized by Robert Lee, a financial expert and member of Hong Kong’s Legislative Council, who highlighted the city’s role in facilitating deeper economic ties between the two countries.
The Ultimate LEGO Experience: Unveiling the 1.3 Billion USD Green Factory in Binh Duong
The world-renowned Danish toy manufacturer, the LEGO Group, has expanded its global reach with a significant investment in Vietnam. On April 9, the company inaugurated its first factory in the country, located in the Vietnam-Singapore Industrial Park III (VSIP III) in the southern province of Binh Duong. This new facility represents a green investment of over 1.3 billion USD, showcasing the company’s commitment to sustainability and its confidence in the Vietnamese market.
The Rise of Vietnam: A New Global Manufacturing Powerhouse
On April 7, French broadcaster TF1 shone a spotlight on Vietnam in a nearly four-minute feature, highlighting the country’s emergence as a prime destination for global investment.
