In its recently released “Global Economic Prospects” report, the World Bank forecasts Vietnam’s GDP growth to reach 6.6% in 2025. This figure is 0.1% higher than the organization’s previous forecast in October 2024.
According to this growth forecast, Vietnam will be among the countries with the highest economic growth rate in Asia, behind only Bhutan and India, both of which are forecast to reach 7.2% growth. Compared to other countries in the region, Vietnam's GDP growth will surpass that of the Philippines (6.1%), Cambodia (5.5%), Indonesia (5.1%) and Thailand (2.9%).
According to Mr. Andrea Coppola - Chief Economist and Manager of the Equitable Growth, Finance and Institutions Program of the World Bank in Vietnam, Laos and Cambodia, like many other countries in the world, in 2024, Vietnam will face challenges related to international geopolitical tensions and be affected by climate change and natural disasters.
"Vietnam's economy has had very positive results thanks to increased demand from major export partners such as the EU and the US, leading to a strong recovery in exports and industrial production, along with a gradual recovery of domestic consumption," said Mr. Andrea Coppola.
According to MBS's January 2025 Macroeconomic Report, Vietnam's economy has maintained an improving trend over consecutive quarters (Q1: +5.87%; Q2: +6.93%; Q3: +7.4%; Q4: +7.55%). GDP growth for the whole year of 2024 reached 7.09%, driven by positive manufacturing activities and a strong recovery of the service sector in the last quarter of the year.
Impressive economic results in 2024 have shown a resilient economy and created a solid foundation for Vietnam to enter a new era.
"Accordingly, we forecast GDP growth in 2025 to reach 7.1% thanks to increased public investment and vibrant production activities," MBS experts forecast.
MBS assesses that domestic consumption is expected to recover in 2025, boosted by consumption stimulus programs and price cuts such as VAT reduction, lending interest rate reduction and basic wage increase. In addition, higher-than-expected growth in the US or China could help boost export-led growth.
