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.
At the launch event for the World Bank’s Vietnam Economic Update. (Photo: VNA)
Hanoi (VNA) ✅– Vietnam’s economy expanded by 7.5% 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% in 2025, before easing to 6.1% in 2026 and rebounding to 6.5% 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./.
The Party and the State have identified digital transformation as one of the three strategic breakthroughs for the new era, as set out in the Politburo's Resolution No. 57-NQ/TW on breakthroughs in science and technology development, innovation, and national digital transformation.
The Vietnam Blockchain and Digital Asset Association (VBA), KuCoin Group, and 1Matrix Company have entered into a strategic Memorandum of Understanding (MoU), ushering in a new stage of cooperation to strengthen blockchain infrastructure, expand digital asset applications, and accelerate the growth of Vietnam’s digital economy.
With export earnings nearing 150 billion USD, the processing industry accounted for nearly half of Vietnam’s total export value in the first eight months of 2025, solidifying its role as the “golden key” behind the nation’s export breakthrough.
Reaffirming Vietnam’s commitment to foreign investors, Finance Minister Nguyen Van Thang said government policies always aim to ensure transparency, fairness and a mutually beneficial environment that promotes innovation and safeguards investor rights, making Vietnam a sustainable and long-term investment destination.
The State Bank of Vietnam must launch an official gold price information portal, study the establishment of gold exchanges, and issue guiding documents to implement the Government’s decree on the management of gold trading activities.
According to the World Bank Group, Vietnam will need approximately 368 billion USD in investment for climate adaptation and carbon reduction projects by 2040. Yet, as of the end of 2024, green credit accounted for just 4.5% of the country’s total outstanding loans.
Amidst robust digital transformation across all sectors, the food processing industry has tapped such digital technologies as Internet of Things, AI, blockchain and Big Data to optimise production process, control supply chain, and meet consumers’ demands.
The French side pledged to share technical guidelines and safety standards, with the Institute for Radiological Protection and Nuclear Safety (IRSN) ready to provide training for Vietnamese specialists.
Vietnam now has more than 940,000 private enterprises and over 5 million household businesses, contributing approximately 50% of GDP, over 30% of state budget revenue, and employing 82% of the national workforce.
Businesses underlined the need for expanding green credit and non-collateral concessional loans for circular agriculture projects, facilitating their participation in national key projects, and fostering alliances among Vietnamese enterprises as well as cooperation with regional partners.
State-owned Vietcombank currently leads the banking system with total assets exceeding 85 billion USD and a market capitalisation of over 20 billion USD, while maintaining strong financial safety indicators. Its non-performing loan ratio remains the lowest in the sector at 0.97%.
Malaysia is Vietnam’s third-largest trading partner in ASEAN and ninth globally, as well as a key investor with 731 valid projects worth about 13 billion USD. Bilateral trade reached 9.23 billion USD by July 2025, up 8% year-on-year, nearing the 18 billion USD target.
Finance Minister Nguyen Van Thang noted that free trade agreements such as the UK–Vietnam Free Trade Agreement (UKVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have expanded opportunities for businesses in both countries.
Lotte Shopping currently operates three department stores and 16 supermarkets in Vietnam, alongside one department store and 48 supermarkets in Indonesia. The company highlighted the success of its flagship Lotte Mall West Lake Hanoi, which opened in 2023, describing it as a model for future premium complexes. Kim said the group intends to replicate this concept in other major Vietnamese cities.
In the EU, illegal, unreported and unregulated (IUU) fishing remains a major obstacle to Vietnam's efforts to have the European Commission (EC)'s “yellow card" lifted. The bloc’s dense and constantly changing regulatory framework also affects farming zones, production processes and quality standards.
The Vietnam Private Sector Forum 2025 (VPSF 2025) opened in Hanoi on September 15, packing in over 1,500 entrepreneurs, economists, and international organisations across four thematic sessions to reshape Vietnam’s private sector landscape.
The economic picture in the first eight months of 2025, whether viewed from the overall economy or from a local perspective, is very positive. Major economic centres have recorded extremely impressive growth in the period, the Ministry of Finance stated in its recent report on the socio-economic situation, sent to the Government.
Cross-border e-commerce is set to become one of the strategic pillars in Vietnam’s national master plan for e-commerce development during 2026–2030, as the country looks to build a sustainable digital export ecosystem and enhance global competitiveness for its businesses.
The State Bank of Vietnam set the daily reference exchange rate at 25,208VND/USD on September 16, down 8 VND from the previous day.
The shift of global supply chains, coupled with the impacts of the Fourth Industrial Revolution, is opening up both opportunities and challenges for the Vietnamese economy.
According to preliminary statistics from Vietnam's Customs Department, as of August 15 this year the country's shrimp exports to China (including Hong Kong) surged by up to 76% over the same period last year, reaching nearly 767 million USD and accounting for nearly 29% of the country's total shrimp export turnover.
