Hanoi, March 12, 2025-Viet Nam's real GDP is projected to grow 6.8 percent in 2025 and 6.5 percent in 2026, according to the World Bank's latest economic update report for Viet Nam -Taking Stock, released today.
A rebound in exports, powered by the global demand for technology products, supported growth in 2024. However, the momentum is expected to slow this year. The main uncertainties to the growth outlook stem from slower-than-expected global growth and trade disruptions, particularly among Viet Nam's major trading partners.
Foreign direct investment (FDI) inflows are projected to remain steady-at about $25 billion disbursed- reflecting Viet Nam's continued appeal to global investors. Increased public investment and an accelerated recovery in the real estate market, thanks to faster project clearance, could support domestic demand, partially offsetting external risks.
To navigate growing uncertainties, the report recommends strategies to sustain growth, including ramping up public investment, addressing financial sector vulnerabilities, strengthening energy resilience, and pushing forward with structural reforms.
"Viet Nam is projected to maintain robust economic growth over the next two years, but it can use its fiscal space to better prepare for heightened uncertainties", said Mariam J. Sherman, World Bank Director for Viet Nam, Cambodia and Lao PDR. "Growth-enhancing public investment, especially in urban, transport, and energy infrastructure will be critical, provided the authorities can both scale it up and ensure that spending is efficient."
The report highlights Viet Nam's push toward e-mobility as a key step in creating a greener transport sector and reducing local air pollution. In 2021, transport accounted for 32.9 million tons of CO2-equivalent (CO2e) emissions, or 7.2 percent of the country's total greenhouse gas emissions. To achieve its 2050 net-zero target, Viet Nam will need to prioritize vehicle electrification.
The transition to electric vehicles (EVs) could reduce net emission by 2.2 million tons of CO2e by 2050, even with the current power grid mix. It could also create up to 6.5 million jobs cumulatively by 2050, particularly in battery manufacturing and charging infrastructure development.
To accelerate EV adoption in the two-wheeler segment, the report recommends implementing strong safety standards, incentivizing the adoption of high-performance batteries, expanding charging and battery-swapping stations, and introducing affordable financing options to offset upfront costs, among others. To pave the way for large-scale EV adoption anticipated after 2035, Viet Nam needs to prepare its power system for increased electricity demand and establish a fast-charging network over the next decade.
Taking Stock is the World Bank's biannual economic report on Viet Nam, providing insights into the country's economic outlook and strategies for growth.
