Việt Nam sets local GRDP growth targets | Vietnam Today

Added: 2026-05-18

[00:00:00]A new feature of the 2026-2030 five-year socioeconomic development plan assigns specific GRDP targets to each locality. While assigning specific targets can sharpen accountability and boost governance performance, it can also create significant challenges for cities. More in the following story.

[00:00:23]After the first session of the 16th National Assembly, Ho Chi Minh City has been assigned a GRDP growth target of 10% for 2026 and an average of 10% for the 2026-2030 period.

[00:00:38]Every sector and every unit must give their best, but hitting the target will demand smart, carefully calibrated policies to keep the economy's key balances healthy and macro indicators stable.

[00:00:53]For leading economic hubs like Ho Chi Minh City, they can no longer rely on old advantages like land or cheap labor.

[00:01:00]This requires heavy investment in human capital and knowledge because those are the foundations for innovation.

[00:01:09]Ho Chi Minh City is well-positioned to carry out this transformation because it is Vietnam's innovation hub, serving as a meeting point for scientific, technological, and international activities. As a result, it has both the infrastructure and the human capital to implement deep, intensive growth.

[00:01:28]When advantages based on traditional resources reach their limits, localities must shift to growth models based on science and technology, innovation, productivity, and knowledge.

[00:01:41]It is necessary to create greater proactiveness and expand the scope of decision-making authority for local governments. Local authorities should be granted the right to negotiate to seek ways to attract more FDI.

[00:01:55]This reflects a new mindset in national [music] governance. In reality, national growth must come from each specific locality and city.

[00:02:06]And now to further examine the motivations, financial strategies, and wider implications for Vietnam's growth ambitions, economist Dr. Le Hong Vu now joins us. Well, first of all, thank you very much for taking the time to talk with Vietnam today. My first question as this is the first time the National Assembly has assigned specific GRDP growth targets to each locality for the 2026 to 2030 period. What do you see as the primary motivations behind this policy shift?

[00:02:44]According to the National Statistics Office, in 2025, Ho Chi Minh City contribute about 23% to the GDP growth of Vietnam, followed by Hanoi, Hai Phong, and then Dong Nai and Bac Ninh and the rest of the cities and provinces just 3% below. So, you can see is there a significant gap. And second, Vietnam learned the successful model from ASEAN development. So, they want to create the friendly and very healthy competition between the locality to attract FDI, human resources, and also boost for infrastructure development. And third is that Vietnamese central government can see the successful business practice from the province and then replicate at scale nationally.

[00:03:40]So, from a financial services perspective, what strategies should localities with ambitious GRDP goals prioritize to attract investment and achieve these targets?

[00:03:53]As you know, that the Vietnamese is very precious to to achieve the double digit economic growth in upcoming time.

[00:04:02]So, they really need a lot of FDI. And when foreign investors come to Vietnam, the first thing they want to care about the investment business environment. The second is about the certainty in terms of legal policies. And the third one is about the dispute resolutions where doing business. And number two is about potential project investment roadmap forum. The leader of the locality should go overseas to attend international forum to discuss about which products or services that they can offer. And the third is money or capital. The locality should have some support scheme for SMEs to access capital.

[00:04:44]So, looking ahead, how might this National Assembly initiative of locality-specific GRDP targets influence Vietnam's overall ambition for 10% 10% plus annual GDP growth through 2030, particularly in a professional services sectors? So, as you know, I would like to say about yes, Vietnam is very ambitious. However, we have some foundation to achieve those targets. And also more in financial service, as you can hear that the international financial center in Ho Chi Minh City and Da Nang is a new driver of economic growth. And for example, in Da Nang, they will target innovation and semiconductor like manufacturing and AI adoption. In Ho Chi Minh City, they will they will continue to focus on the traditional and complex of course complex financial products. And in coastal provinces, it's a good for investing about renewable energy.

[00:05:45]And also, you can see here you can see that Vietnam is pushing for digital transformation, uh building the data center. So, I I certainly see all the IT or cybersecurity are extremely important to run to run this well and safely. So, that means that my son of the professional services develop a lot.

[00:06:07]Well, thank you very much for joining us. That was our discussion with Dr. Economist Le Hong Vu.