WB forecasts Vietnam's economy to grow 6.8% this year

The report highlights that Vietnam will remain one of the fastest-growing economies in the region and globally in 2024.

Speaking at the event, Dr. Andrea Coppola, Lead Economist for Vietnam, Cambodia, and Laos at the WB, emphasized the need for policies that adapt to shifts in global trade and stimulate domestic consumption to ensure balanced growth.

These policies should focus on boosting public investment, addressing financial sector risks, enhancing energy resilience, and advancing structural reforms.

Dr. Coppola noted that while Vietnam’s economy is expected to maintain steady growth in 2025 and 2026, inadequate infrastructure remains a challenge, requiring further investment.

He also underscored the importance of fiscal space and improved public investment management in mobilizing resources for infrastructure projects, particularly in energy, logistics, and transport, to sustain growth momentum in the medium and long term.

Meanwhile, Mariam J. Sherman, WB Country Director for Vietnam, Cambodia, and Laos, remarked that Vietnam is set to maintain robust economic growth over the next two years. However, she suggested leveraging fiscal space to better prepare for potential uncertainties.

“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,” she added.

Experts cautioned that despite Vietnam’s high economic openness, external risks, including a global economic slowdown and escalating trade tensions, could weigh on industrial output, manufactured exports, and overall growth.

Opportunities for economic development across the entire value chain

The WB report also underscores Vietnam’s push for e-mobility as a crucial step in greening the transport sector, curbing air pollution, and fostering economic development across the entire value chain.

In 2021, the transport sector accounted for 32.9 million tonnes of CO2-equivalent (CO2e) emissions, or 7.2% of Vietnam’s total greenhouse gas emissions. To meet its 2050 net-zero target, the country must prioritize vehicle electrification.

According to the report, transitioning to electric vehicles (EVs) could cut net emissions by 2.2 million tonnes of CO2 by 2050, even under the current power grid mix. The shift could also generate up to 6.5 million cumulative jobs by 2050, particularly in battery production and charging infrastructure development.

To accelerate EV adoption in the two-wheeler segment, the report recommends enforcing stringent safety standards, incentivizing high-performance batteries, expanding charging and battery-swapping stations, and offering affordable financing options to reduce upfront costs.

In preparation for large-scale EV adoption expected after 2035, Vietnam must also upgrade its power system to accommodate rising electricity demand and establish a nationwide fast-charging network within the next decade.