Macro/ Strategy

GDP in 6M 2025 increased by 7.52% - the highest increase in the period 2011-2025

GDP in Q2 2025 reached 7.96% YoY. It was an impressive increase in the period 2020-2025. Although exporting faced challenges from US tariffs imposing on partners, domestic growth achieved a spectacular increase thanks to (1) domestic production activities (automative and motor vehicles manufaturing), (2) domestic retail growth (thanks to fiscal policies and tourism activities); and (3) increasing public spending.

Domestic production is the driving force

The index of industrial production (IIP) in 6M2025 increased by 9.2% YoY. The processing and manufacturing industry increased the most by 11.1% YoY. Among the large groups in the processing and manufacturing industry; the automative production group grew impressively in 6M2025 with an increase of 31.5%. In addition, the motor vehicles manufacturing group also grew by 14.1%. We estimate that these two vehicle manufacturing groups contributed 1.5-1.6 percentage points to the total growth of the entire processing and manufacturing industry group. In 6M2025, the domestic industry produced 226,500 cars, up 70% over the same period last year thanks to the domestic electric vehicle consumption market developing in the direction of green transformation. In 6 months, VinFast sold more than 67 thousand electric vehicles in the Vietnamese market, 3 times higher than in 2024 (2024 figures include domestic and foreign sales revenue).