Growth to Remain Resilient in 2025, World Bank Says Investing in High-Tech Talent is Viet Nam's Next Step to High-Income Future

Hanoi, September 8, 2025 -Viet Nam's economy is expected to expand at 6.6 percent in 2025, supported by a strong first half when growth accelerated to 7.5 percent, according to the World Bank's latest Viet Nam Economic Update report, released today.

Following strong momentum in the first half of 2025, driven by front-loaded exports, the Vietnamese economy is expected to moderate over the remainder of the year as export growth normalizes. As an export-oriented economy, Viet Nam remains vulnerable to slower global growth and softening demand from major trading partners. Trade-policy uncertainty may also begin to weigh on business and consumer confidence.

Over the medium term, growth is projected to ease to 6.1 percent in 2026 before rebounding to 6.5 percent in 2027, supported by a recovery in global trade and Viet Nam's continued appeal as a competitive manufacturing base.

To support growth and hedge against external uncertainty, the report recommends a focus on scaling up public investment, mitigating financial-sector risks, and advancing structural reforms.

"Viet Nam's low public debt gives the country ample fiscal headroom-policymakers can use well-executed public investment to close infrastructure gaps and create jobs," said World Bank Division Director for Viet Nam, Cambodia, and Lao PDR, Mariam J. Sherman. "At the same time, accelerating structural reforms to strengthen backbone services, advance green growth, build human capital, and diversify trade will help mitigate global risks and sustain long-term growth."

The special focus of this edition, titled Nurturing Viet Nam's High-Tech Talents" highlights the need to build a skilled talent base that can support and accelerate the country's innovation ecosystem. Achieving Viet Nam's high-tech ambitions and its goal of high-income status by 2045 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 Viet Nam, complementing broader business enabling reforms. Total R&D spending in Viet Nam 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 catalyze the development of a work-ready workforce and promote technology transfer and knowledge spillovers.

Taking Stock - Viet Nam Economic Update is the World Bank's biannual economic report series on Viet Nam, providing insights into the country's economic outlook and strategies for growth.