At the launch event for the World Bank’s Vietnam Economic Update. (Photo: VNA)
Vietnam’s economy expanded by 7.5 per cent in the first half of 2025, one of the fastest rates in the region, reflecting strong momentum despite continued global uncertainties, according to the latest Vietnam Economic Update by the World Bank (WB), released on September 8.
The report said the strong momentum provides a solid basis for Vietnam to achieve its growth target for the whole year, even as the global economy continues to face geopolitical and trade challenges.
Sacha Dray, WB economist for Vietnam, said Vietnam is currently the fastest-growing economy in the region, outpacing countries such as Indonesia, Malaysia and Thailand. Exports have been the main driver, spurring manufacturing, logistics and transport services, he noted.
The WB projects Vietnam's GDP growth at 6.6 per cent in 2025, before easing to 6.1 per cent in 2026 and rebounding to 6.5 per cent in 2027. As an export-oriented economy, Vietnam remains vulnerable to slower global growth and softening demand from major trading partners. Trade policy uncertainties may also begin to weigh on business and consumer confidence. Despite challenges, Vietnam remains appealing as a competitive manufacturing base.
WB Division Director for Vietnam, Cambodia, and Laos Mariam J. Sherman noted that with low public debt, Vietnam has ample fiscal headroom to respond to external uncertainties.
To sustain growth and mitigate risks, the WB recommended Vietnam to continue scaling up public investment, ensuring strict oversight of financial-sector risks, and accelerating structural reforms.
The special focus of this edition, titled "Nurturing Vietnam’s High‑Tech Talents” highlights the need to build a skilled talent base that can support and accelerate the country’s innovation ecosystem and its goal of high‑income status by 2045.
According to the WB, Vietnam will require not only a broad and growing pipeline of young STEM graduates, but also a stronger core of experts who lead research, run laboratories, and turn ideas into market-ready products.
The report highlights the potential to raise public and private R&D spending in Vietnam, complementing broader business enabling reforms. Total R&D spending in Vietnam remains lower than more developed regional peers. There is scope to increase PhD-level faculty to grow the pipeline of advanced-degree graduates and high-caliber researchers. Strengthening university–industry-government linkages could catalyse the development of a work-ready workforce and promote technology transfer and knowledge spillovers.
Taking Stock – Vietnam Economic Update is the World Bank’s biannual economic report series on Vietnam, providing insights into the country’s economic outlook and strategies for growth.