Deputy Minister of Industry and Trade: Maintain industrial growth target at all costs

Proactively deploy solutions

At the regular press conference of the first quarter of 2025 of the Ministry of Industry and Trade , the media was very interested in the impact of the US imposing tariffs on Vietnamese goods, which will cause difficulties for manufacturing enterprises and industrial growth targets this year.

Responding to this issue, Mr. Nguyen Ngoc Thanh - Deputy Director of the Department of Industry, Ministry of Industry and Trade - said that to achieve the GDP growth target of 8% in 2025, the industrial sector must reach 9.3%, of which the processing and manufacturing industry must reach double digits.

The Ministry of Industry and Trade held a regular press conference for the first quarter of 2025. Photo: Can Dung

“ The Government and the Industry and Trade sector have no intention of changing this growth target ,” Mr. Nguyen Ngoc Thanh emphasized. He also said that it is still possible to see the difficulties that industrial production enterprises are facing.

Textiles, footwear, electronics, wood, etc. are industries with large turnover, with exports to the US accounting for 30%. Returning to the story of the US tax rate of up to 46% on Vietnam, this is a big challenge for these industries in competing with rival countries.

So what is the solution, according to Mr. Nguyen Ngoc Thanh, the Government and ministries and sectors are urgently preparing to promote negotiations to minimize the impact. In case, the US tax policy does not change compared to the present, it may be necessary to promote negotiations on a free trade agreement with the US.

At the same time, the Ministry of Industry and Trade is considering coordinating with ministries and branches to build low preferential credit to support manufacturing enterprises; propose to reduce corporate income tax; speed up the implementation of infrastructure projects to consume domestic products and large projects in the processing and manufacturing sector such as: Agricultural processing projects, bauxite projects in the Central Highlands, etc.

These are short-term solutions, while at the same time, the authorities continue to implement long-term, fundamental solutions to proactively overcome difficulties. In particular, Vietnam has 17 free trade agreements with 60 countries, this is a good opportunity to diversify the market.

At the same time, speed up negotiations to open up new markets, such as those in the Middle East, South Asia, Latin America, etc. Improve trade promotion activities and expand foreign markets.

“ The above solutions are not only implemented when the US imposes tariffs, but this is a long-term orientation that has been and is being implemented by the Ministry of Industry and Trade ,” the leader of the Department of Industry once again emphasized.

Determined to maintain industrial growth target

In response to media concerns about solutions to ensure industrial development and retain FDI enterprises in the current context, Mr. Nguyen Ngoc Thanh informed that the most important thing is to stabilize the macro economy , the Government is very interested and making efforts to ensure this factor. At the same time, it is necessary to innovate policies for foreign investment such as investment incentives, limiting tax evasion, etc.

Mr. Nguyen Ngoc Thanh - Deputy Director of the Department of Industry, Ministry of Industry and Trade. Photo: Can Dung

Accordingly, the Ministry of Industry and Trade and other ministries and branches actively improve the legal and policy mechanisms in the industrial sector. Implement business support within the framework to develop supporting industries. Coordinate with localities to attract resources for industrial development. Support businesses in implementing large investment projects.

“ Achieving the double-digit growth target in the development of the processing and manufacturing industry will be a big challenge in the coming time, ” said Mr. Nguyen Ngoc Thanh.

At the press conference, providing more information about the industrial sector, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan acknowledged that developing industrial production faces many challenges and we must make efforts and be determined to achieve the set goals.

According to Deputy Minister Nguyen Sinh Nhat Tan, if viewed from a positive perspective, there are many opportunities for the industry to develop. The implementation of Resolution 18 helps to significantly reduce the number of focal points, making it much more convenient for businesses to carry out procedures. Moreover, the merger of localities creates more room for development.

“ Especially focusing on developing science and technology innovation - this is the lever for industry development ,” the Deputy Minister emphasized.

Furthermore, even if the US imposes tariffs on Vietnamese goods, if analyzed carefully, there are still opportunities for high-standard products.

According to a report from the Ministry of Industry and Trade, industrial production in the first quarter of 2025 is forecast to continue to improve and maintain growth momentum based on the growth momentum seen in the first two months of this year. According to the latest report from S&P Global, Vietnam's manufacturing industry recorded growth again in March when both output and total new orders increased again, showing an improvement in the health of Vietnam's manufacturing industry at the end of the first quarter of 2025. Accordingly, the Vietnam Manufacturing Purchasing Managers' Index in March reached above 50 points, for the first time in the past 4 months (reaching 50.5 points, up slightly from 49.2 points in February).

Reporter team

Source: https://congthuong.vn/thu-truong-bo-cong-thuong-giu-bang-duoc-muc-tieu-tang-truong-cong-nghiep-381543.html