Vietnam’s National Assembly has set an ambitious new economic trajectory, raising its GDP growth target to at least 8% for 2025, up from the previous 6.5%-7% goal. This move aligns with the country’s broader push to accelerate industrial and economic expansion while ensuring macroeconomic stability and controlling inflation, projected to stay between 4.5% and 5% this year.

The parliament also approved several key infrastructure projects, including an $8.3 billion railway linking a major northern seaport to China. Partially funded by Chinese government loans, this railway aims to strengthen Vietnam’s trade and logistical connectivity. Additionally, lawmakers greenlit policies to develop the country’s first nuclear power plants, with construction set to begin by the end of 2031. Unlike traditional projects, the government will directly appoint contractors without holding an open tender.

Vietnam is also making strides in its digital infrastructure, allowing Elon Musk’s Starlink to provide satellite internet services while permitting full foreign ownership of its local subsidiary. Meanwhile, the government has introduced financial incentives to boost the domestic semiconductor industry, positioning the country as a competitive player in global tech supply chains.

These measures highlight Vietnam’s efforts to transition into a high-growth economy. With a GDP per capita of around $4,700 in 2024, the country is advancing rapidly compared to Bangladesh’s $2,625 GDP per capita. While both nations rely on manufacturing and exports, Vietnam’s infrastructure investments and digital expansion signal a faster economic transformation.

To complement these economic initiatives, the National Assembly has approved an aggressive bureaucratic reform plan to cut up to 20% of government bodies, aiming to improve efficiency and reduce administrative costs.