Vietnam Economy Update July 2025 – Impacts on Business & Investment
The first half of 2025 has marked a turning point for the Vietnam economy, with robust growth, record-setting business activity, and sweeping legal reforms. For SMEs and foreign investors, understanding these changes is more than just staying informed—it's about seizing the right opportunities and mitigating risks in an increasingly competitive market.
This weekly update summarizes the most recent economic highlights, and outlines their direct implications for anyone looking to do business in Vietnam or expand existing operations.
Vietnam Economy in H1 2025
7.52% GDP Growth – Highest Since 2011
Image credits to: Vietnam NSO (July 2025 Update)
Vietnam’s GDP soared by 7.52% in the first half of 2025, driven by services, tourism, foreign trade, and construction. This marks the strongest first-half economic growth since 2011. Key sectors driving this growth include:
- Agriculture, forestry, and fisheries: Expanded by 3.84%, supported by stable domestic demand and steady exports.
- Industry and construction: Posted a robust 8.33% growth rate, reflecting ongoing infrastructure development and manufacturing resilience.
- Services: Surged by 8.14%, marking the highest H1 growth rate since 2020 and signaling a strong rebound in tourism, logistics, and retail.
Notably, the services sector contributed more than half of total GDP growth, underscoring its growing influence on Vietnam’s economic trajectory—followed by industry and agriculture.
Vietnam FDI Growth: US$21.5 Billion in FDI Inflows
Vietnam attracted over US$21.5 billion in foreign direct investment (FDI) in the first half of 2025—a 32% year-on-year increase.
- US$11.72 billion in disbursed capital reflects not just pledged but actual investment.
- This reflects international confidence in Vietnam’s political stability, labor market, and infrastructure improvements.
Surge in Business Registrations
Growth is fueled by administrative reforms and Resolution No. 68, which targets private sector development. Institutional simplifications and digitization of procedures have increased investor confidence, which leads to:
- 91,200 newly registered businesses from January to June 2025.
- June alone saw 24,000 new registrations—twice the monthly average from 2021–2024.
- An additional 61,500 businesses resumed operations in H1 2025.
Inflation and Monetary Stability
- In the first six months of the year, average inflation showed a slight upward trend compared to the 2015–2024 period, mainly due to significant increases in construction material prices and healthcare service costs.
- According to the National Statistics Office, the average CPI in Q2/2025 increased by 3.31% compared to Q2/2024; average CPI in H1/2025 increased by 3.27% compared to the same period last year, and experts predict 2025 inflation to remain around 3.4% or even lower, barring global disruptions.
Legal Updates: Key Amendments Effective from July 1, 2025
Criminal Code Changes and Judicial Updates
The Supreme People's Court has just issued an official dispatch to thoroughly implement the new provisions of laws, resolutions, and ordinances passed by the National Assembly and the Standing Committee of the National Assembly during the 9th session.
- Death penalty abolished for 08 crimes, including those related to embezzlement, bribery, and the production or sale of counterfeit medicine.
- Penalties have been raised for violations in the fields of production, commercial business, environment, public safety, and corruption.
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The amended Penal Code has raised the minimum imprisonment thresholds for certain offenses related to the environment, food safety, and narcotics.
The legal system is being modernized to support both justice and business. For SMEs, these changes may simplify disputes, reduce procedural delays, and improve contract enforcement.
Tighter Enforcement on Counterfeits and Misinformation
Authorities intensified efforts to combat counterfeit goods and misinformation:
- Over 9,919 violations were handled by General Department of Market Surveillance in H1, 2025. The total amount of fines imposed reached VND 266 billion, and 76 cases with signs of criminal violations were transferred to the investigative authorities.
- New initiatives like "Tick xanh trách nhiệm" aim to certify trusted vendors and improve consumer confidence.
- National enforcement campaign against counterfeit goods and misinformation launched in May 2025
What This Means for Your Business?
Opportunities
- Robust Growth Across Sectors: Strong GDP growth and surging tourism, trade, and FDI offer ideal conditions to expand or invest in Vietnam, particularly in services, logistics, and construction.
- Improved Business Environment: Pro-business reforms, simplified licensing, and tax incentives—especially under Resolution 68—make it easier for SMEs to formalize and scale.
- Stronger Legal Protection: Crackdowns on counterfeit goods and enhanced penalties for commercial crimes offer a fairer, safer market for legitimate businesses.
Challenges
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Rising Competition: A record number of new businesses increases market saturation, making innovation and digital transformation crucial.
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Strict Compliance Requirements: Tougher regulations mean businesses must maintain transparency, product traceability, and legal conformity to avoid penalties.
Conclusion: Act Now, Invest Smart
Vietnam's current momentum is more than a temporary boom—it's a structural shift toward a more open, transparent, and dynamic economy. For entrepreneurs, SMEs, and foreign investors, this is the moment to act:
- Explore new sectors like logistics, tourism, and renewable energy.
- Take advantage of legal and administrative reforms.
- Reinforce compliance, innovate continuously, and build resilience.
Ready to take the next step?
👉 Book a free consultation with United Consulting Vietnam today and discover how to set up or expand your business successfully in Vietnam’s evolving landscape.
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Disclaimer:
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or investment advice. While every effort has been made to ensure accuracy at the time of publication, laws and regulations may change. Readers are encouraged to consult with qualified legal or financial advisors before making decisions related to foreign investment or share transfers in Vietnam. United Consulting is not liable for any actions taken based on this content.
The Week in Review: Vietnam Economy Update in July 2025