To support economic recovery, targeted policies are essential to aid vulnerable sectors and improve public investment.

Improvements in the transparency of the social insurance fund and efforts to mitigate climate change are necessary for achieving financial sustainability.

Vietnam continues to grapple with various challenges, including household spending, the performance of micro, small, and medium enterprises (MSMEs), infrastructure issues, and banking risks.

To ensure long-term growth, it is crucial for Vietnam to address infrastructure inadequacies and a skills gap, which are essential for enhancing international competitiveness.

However, the economy faced significant disruptions due to Super Typhoon Yagi, which struck northern Vietnam in September 2024, impacting infrastructure, agriculture, and industry, particularly in Hanoi and Hai Phong.

The economy is also threatened by cybersecurity risks, climate change, and an aging population, highlighting the need for a focus on sustainable development.

Vietnam's economy demonstrated resilience with a GDP growth of 6.7% in the third quarter of 2024, a notable increase from 4.4% during the same period in 2023.

This growth was largely fueled by strong export demand and increased foreign direct investment (FDI), although household spending has remained cautious and sluggish.

The real estate sector shows potential for recovery with new laws, but it requires addressing unresolved bottlenecks and developers' bond obligations.

Authorities are considering implementing tax measures to control speculative demand and introducing macroprudential policies to mitigate financial risks.

Strengthening the banking sector's resilience is critical, particularly concerning non-performing loans and exposures to the real estate market.