WB raises Vietnam GDP forecast to 7.5%
The World Bank has revised up Vietnam’s GDP prediction to 7.5% for this year, much higher than the forecast of 5.8% in early June as “economic activity continues to normalize.”
In April, the bank put its projection at 5.3%, and 4% in the worst-case scenario.
Growth drivers are expected to pivot from external to domestic demand, and from manufacturing to services.
“The recovery of services - so far, a laggard- is expected to pick up as consumers satisfy pent-up demand and foreign tourist arrivals rebound. In contrast, industrial production is expected to moderate as external demand weakens,” it said in a report named “Educate to grow” released Monday.
Vietnam’s economic expansion next year is estimated at 6.7%.

Vietnam's services sector activity is still recovering at a slower rate, 5.7% below pre-Covid trends, according to the WB. Photo courtesy of BRGMart.
The World Bank’s latest forecast is the most optimistic among leading international institutions. The Asian Development Bank (ADB) maintainted its prediction for Vietnam's GDP growth this year at 6.5% in a report released on July 21, while revising down its forecast for developing Asia and the Pacific to 4.6% from 5.2% in April.
In the same month, Standard Chartered, HSBC, and IMF put their forecast at 6.7%, 6.9%, and 6%, respectively.
Vietnam aimed to achieve economic expansion of 7% this year, higher than the previously-set target of 6-6.5%, Minister of Planning and Investment Nguyen Chi Dung told a government meeting in early July.
The WB, however, noted that despite strong growth, the economy will not return to full potential in 2022.
The Vietnamese economy has rebounded swiftly, expanding by 5.2% in Q4/2021, 5.1% in Q1/2022, and 7.7% in Q2/2022.
While swift, the recovery remains both "incomplete and uneven", with aggregate output still 3.8% below pre-Covid trends and the services sector activity still recovering at an even slower rate, 5.7% below pre-Covid trends, according to the bank.
In the short run, the focus should be on full utilization of the Economic Recovery Support Program with a strong push on project implementation, it recommended. The program envisages increased investment in digital and physical infrastructure which would help bolster domestic demand recovery in the near-term while also boosting Vietnam’s long-term potential growth.
“In addition, expanding targeted social safety nets would not only help buffer the effects of the fuel price shock and rising inflation on poor and vulnerable households but cushion impacts on private consumption more effectively than the current untargeted cuts in the environmental protection tax and proposed cuts of value added tax (VAT) and import taxes. Heightened inflation risks call for agile monetary policies.”
Inflation is projected to accelerate to 3.8 percent in 2022 due to higher prices of energy, and rise further to 4 percent in 2023, before subsiding to 3.3 percent in 2024.
The State Bank of Vietnam put the country's inflation target at below 4%.
This baseline forecast is subject to significant global uncertainties with downside risks to growth, the WB added. These include the emergence and spread of new Covid-19 variants, persistent global inflationary pressures, and heightened geopolitical tensions and conflicts.
Amidst such global economic uncertainty, the recently-released EuroCham business climate index, which reflects European business confidence in Vietnam’s investment environment, dropped slightly in the second quarter of the year.
The index (BCI) declined 4.4 points over the first quarter to 68.8 points.
In contrast with earlier in the year, compounding factors such as the continuing war in Ukraine, commodity price spikes, and the ripple effect of China’s zero-Covid policy have dampened expectations among Vietnam’s European business community, the European Chamber of Commerce in Vietnam (EuroCham) said in a press release.
Although the BCI has fallen, it remains 7.6 points higher than in the fourth quarter of 2021, when it measured 61.0 points.
- Read More
From transparent technology to humanitarian values: The story of Vietnam’s first charity platform
Launched in 2021 under the direction of the Ministry of Science and Technology, in coordination with the Vietnam Red Cross Society and other socio-political organizations, a platform named “thiennguyen” (charity) developed by MBBank has paved a new path for community philanthropy in the digital era.
Companies - Wed, September 10, 2025 | 8:41 am GMT+7
Increased foreign capital flows, long-term opportunities for Vietnam's retail-consumer goods industry
Vietnam’s conglomerate Masan Group (HoSE: MSN), with a market capitalization of nearly $4.8 billion, high liquidity, ample foreign ownership room, and a solid business foundation, is expected to be a top pick for foreign investors.
Companies - Wed, September 10, 2025 | 8:00 am GMT+7
Vietnam’s pepper exports surpass $1 bln in 8 months
Vietnam’s pepper industry recorded export revenue of more than $1 billion in the first eight months of 2025, the highest level for the period in seven years, according to the Vietnam Pepper and Spice Association (VPSA).
Companies - Tue, September 9, 2025 | 11:13 pm GMT+7
Indonesia, EU to sign CEPA after decade of negotiations
The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is set to be signed on September 23 after a decade of negotiations, according to Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto.
Southeast Asia - Tue, September 9, 2025 | 10:07 pm GMT+7
Vietnam lifts asset freeze on ex-FLC chairman Trinh Van Quyet
Authorities in Vietnam’s central province of Khanh Hoa are moving to lift restrictions on asset transactions and transfers linked to Trinh Van Quyet, former chairman of property developer FLC Group, the provincial Department of Justice said on Tuesday.
Economy - Tue, September 9, 2025 | 9:26 pm GMT+7
Abbott-backed medical firm Domesco to pay 25% cash dividend
Domesco Medical Import Export JSC (HoSE: DMC) will distribute a 25% cash dividend for 2024, equivalent to VND2,500 (9.5 U.S. cents) per share.
Companies - Tue, September 9, 2025 | 8:39 pm GMT+7
Vietnam’s finance ministry proposes raising personal deduction to $588 per month
Vietnam’s Ministry of Finance has proposed raising the personal income tax deduction to VND15.5 million ($588) per month and the dependent deduction to VND6.2 million ($235).
Economy - Tue, September 9, 2025 | 4:09 pm GMT+7
PM requests prompt finalization of feasibility study for Lao Cai-Hanoi-Hai Phong railway project
Prime Minister Pham Minh Chinh on Sunday evening chaired a high-level meeting with key ministries and agencies to accelerate the implementation of the Lao Cai-Hanoi-Hai Phong railway project, during which he stressed the need for prompt completion of the project’s feasibility study.
Economy - Tue, September 9, 2025 | 3:06 pm GMT+7
WB, ADB to provide over $12 bln to green projects in ASEAN
The World Bank has allocated $2.5 billion, while the Asian Development Bank has set aside $10 billion to support green projects in ASEAN, said Malaysian Deputy Prime Minister Datuk Seri Fadillah Yusof.
Southeast Asia - Tue, September 9, 2025 | 3:01 pm GMT+7
Central Vietnam province seeks investors for $42 mln wind power project
Vietnam’s central province of Quang Tri is seeking investors for the Hung Bac wind power project, with total investment estimated at VND1.1 trillion ($41.69 million), according to the provincial People’s Committee.
Energy - Tue, September 9, 2025 | 2:56 pm GMT+7
Vietnam's leading conglomerate Vingroup sues 68 entities, individuals for false information
Vingroup JSC (HoSE: VIC) on Monday reported to authorities, notified foreign embassies, and filed civil lawsuits against 68 organizations and individuals at home and abroad for spreading false information about the corporation online.
Companies - Tue, September 9, 2025 | 10:45 am GMT+7
Warburg Pincus unit, Masterise eye $739 mln expressway to Vietnam’s mega airport
A subsidiary of U.S. private equity firm Warburg Pincus and Vietnamese developer Masterise Group have separately proposed building an over VND19.52 trillion ($739 million) expressway connecting a major tourism area to the under-construction Long Thanh International Airport in the southern region.
Infrastructure - Tue, September 9, 2025 | 8:00 am GMT+7
Hoa Binh Construction wins $5 bln contract for mega urban project in southern Vietnam
Vietnam's leading contractor Hoa Binh Construction Group has secured a contract to build the first phase of a mega urban area project in Vietnam’s southern metropolis of Ho Chi Minh City.
Real Estate - Mon, September 8, 2025 | 9:22 pm GMT+7
Vietnam's monetary policy remains accommodative: WB
Vietnam's monetary policy has remained accommodative, as State Bank of Vietnam (SBV) interventions contained foreign exchange pressures and increased credit growth, the World Bank Group said in its country economic update.
Economy - Mon, September 8, 2025 | 7:46 pm GMT+7
Property, technology, energy among sectors recording highest M&A activity in Vietnam
Vietnam’s M&A landscape in July recorded 34 completed transactions with the total disclosed and estimated deal value of $786 million, according to Grant Thornton Vietnam.
Economy - Mon, September 8, 2025 | 3:49 pm GMT+7
Vietnam's Van Thinh Phat-tied firm incurs $14 mln loss in H1 as legal woes persist
Bong Sen Corp, the hotel and property arm of troubled Van Thinh Phat Group, posted a net loss of nearly VND356 billion ($14 million) in the first half of 2025, its filing to the Hanoi Stock Exchange (HNX) showed.
Companies - Mon, September 8, 2025 | 3:24 pm GMT+7