Shaping tomorrow's Vietnam: Key policy developments of December 2024

Prime Minister Pham Minh Chinh has set ambitious economic targets for 2025, emphasizing sustainable growth while maintaining macroeconomic stability.

The government aims to achieve a GDP growth rate of more than 8% and even double-digit growth. This bold objective is supported by comprehensive strategies focusing on traditional growth drivers such as investment, consumption, and exports, while simultaneously developing new economic engines.

Illustration of the major policy developments of the Vietnamese government in December 2024. Image: KT&ĐT

The establishment of key economic zones demonstrates Vietnam's commitment to regional development. The Southern Hai Phong Coastal Economic Zone, covering 20,000 hectares, aims to leverage its strategic location for international trade. Likewise, the Ha Nam High-Tech Park and the Bac Phong Sinh Border Gate Economic Zone represent significant investments in technological advancement and cross-border trade.

Administrative reform and digital transformation

The government has taken decisive steps towards administrative simplification and digital transformation. A significant shift from pre-approval to post-approval processes marks a fundamental change in government operations. The implementation of Project 06 focuses on improving citizen and business services through improved IT systems and integration with national databases.

Electronic invoicing has received particular attention, with new directives focusing on the efficiency of tax collection, especially at retail service stations. The Ministry of Finance has been tasked with strengthening control mechanisms and implementing strict penalties for non-compliance.

Urban development and housing

The approval of Hanoi's Capital Master Plan for 2021-2030 is a milestone in the city's development. The plan envisions Hanoi as a "cultural - civilized - modern" city, with an emphasis on green spaces and smart infrastructure. The government has also prioritized the development of social housing, with new regulations requiring a 20% land reserve for social housing in urban developments.

Environmental protection and sustainable development

Environmental initiatives feature prominently in recent policy decisions. The government has issued directives to address drought, water scarcity, and saltwater intrusion, particularly in vulnerable regions such as the Mekong Delta. The National Green Growth Strategy emphasizes organic and high-tech agricultural practices, with a focus on environmental protection and climate adaptation.

Transportation and infrastructure

New transportation regulations reflect the government's commitment to modernizing infrastructure while ensuring safety. The Decree on Taxi Operations provides clear guidelines for both traditional and technology-based services. Traffic safety measures have been strengthened, with new penalties for violations ranging from VND800,000 (US$32) to VND20 million ($784), targeting offenses such as drunk driving and jaywalking.

Financial sector reforms

The financial sector has seen significant regulatory updates, particularly regarding People's Credit Funds and microfinance institutions. New licensing conditions require minimum charter capital, specific membership criteria, and robust organizational structures. Interest rate management directives aim to lower borrowing costs and ensure effective credit distribution.

Technology and education

The government has demonstrated a strong focus on technological advancement and education. A directive on human resource training in the semiconductor industry and core digital technologies emphasizes collaboration between state, educational institutions, and businesses. The international integration project in education and training until 2030 aims to improve education quality and develop high-quality human resources.

Public safety and security

Several directives address public safety concerns, including fire prevention measures for crowded places during holiday periods. The government has also strengthened environmental police regulations and established clearer protocols for dealing with high-tech fraud on digital networks.

Social welfare and healthcare

The development plans for social welfare facilities and healthcare networks through 2030 reflect a comprehensive approach to social welfare. These initiatives focus on attracting investment, developing human resources, and expanding the network of facilities, while emphasizing environmental protection.

Market regulation and consumer protection

Consumer protection measures include directives to ensure stable supplies and reasonable prices for essential goods during holiday periods. The government has also introduced stricter controls on land auctions to prevent market manipulation and ensure transparency.

The emphasis on digital transformation, sustainable development, and infrastructure modernization indicates a forward-looking strategy that is aligned with global trends while addressing domestic needs.

These initiatives are indicative of Vietnam's commitment to maintaining economic momentum while ensuring sustainable and inclusive growth. The success of these policies will depend on effective implementation and coordination among various government agencies, as well as the active participation of businesses and citizens in supporting these development goals.