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World Bank: Vietnam’s Economy Forecast to Grow 6.6% in 2025

  • Writer: KBC-LINK Editor
    KBC-LINK Editor
  • Sep 9
  • 2 min read

The World Bank (WB) released its latest economic update on September 8, projecting Vietnam’s GDP growth at 6.6% in 2025. Strong export performance in the first half of the year is expected to drive expansion, while weakening global demand and rising trade uncertainties may weigh on growth in the second half.

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7.5% Growth in H1, Driven by Exports

In the first half of 2025, Vietnam’s economy expanded by 7.5%, outpacing regional peers. Electronics, textiles, and related export industries played a leading role, while manufacturing and logistics services also gained momentum. This robust performance has reinforced confidence among investors and businesses.

However, growth is expected to moderate in the latter half of the year as demand in key global markets slows.


Impact of Global Slowdown Unavoidable

As an export-oriented economy, Vietnam remains highly exposed to external conditions. The WB warns that weaker demand in the U.S., EU, and other key markets, combined with international trade frictions, could put downward pressure on growth.

The Bank projects GDP growth to slow to 6.1% in 2026, before rebounding to 6.5% in 2027 as global trade recovers and Vietnam sustains its competitive role as a manufacturing hub.


Investment and Reform as Key Drivers

To ensure stable growth, the WB highlights several priorities:

  • Accelerating public investment: Expanding infrastructure projects in transport, energy, and urban development to boost domestic demand and employment.

  • Strengthening the financial system: Enhancing banking sector supervision, managing non-performing loans, and maintaining capital market stability.

  • Structural reforms and human capital development: Focusing on high-skilled labor in STEM fields, and expanding investment in research & development (R&D).

According to the WB, effective public investment and human capital development will shape Vietnam’s long-term competitiveness.


Developing High-Tech Talent – A Long-Term Priority

A special section of the WB report emphasizes the importance of developing Vietnam’s high-tech workforce. To achieve its goal of becoming a high-income country by 2045, Vietnam must not only increase the number of STEM graduates, but also nurture a core group of experts capable of leading research, operating laboratories, and turning innovations into market-ready products.

KBC-LINK’s Perspective

The WB report underscores Vietnam’s resilient growth potential as a global manufacturing destination, while also highlighting the vulnerabilities tied to global economic uncertainty.

At KBC-LINK, we view these insights as crucial for businesses considering entry into or expansion within Vietnam. Through information sharing and partnerships with local stakeholders, we continue to support Japanese companies in navigating opportunities and risks in the Vietnamese market.


Source: World Bank Vietnam Economic Update



 
 
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