ADB Raises Vietnam’s Growth Forecast to 6.7% for 2025

The Asian Development Bank (ADB) recently announced a revision of Vietnam’s economic growth forecast, elevating it to an impressive 6.7% for 2025. This update was unveiled during a press conference in Hanoi, illuminating the positive trajectory of Vietnam’s economy and paving the way for optimistic development in the near future.

Economic Performance in 2025

According to the ADB’s latest Asian Development Outlook Report for 2025-2026, Vietnam’s economy demonstrated remarkable resilience and growth in the first half of 2025. The ADB reported a growth acceleration of 7.5% year-on-year, which marks a significant increase from 6.4% in H1 2024. This growth rate is the strongest recorded for the first half of the year since 2010, underscoring the country’s economic dynamism.

Key sectors contributed notably to this surge. The service sector expanded by an impressive 8.1%, driven largely by the recovery in tourism and related industries. Concurrently, the industrial and construction sectors flourished, growing by 8.3%, while agriculture also saw a commendable rise of 3.8%.

Timely Policy Actions and Support from ADB

Shantanu Chakraborty, the ADB Country Director for Vietnam, emphasized the importance of ongoing collaboration between the bank and the Vietnamese government, highlighting ADB’s commitment to supporting the nation’s economic development. His remarks came in light of active governmental measures that have been implemented to navigate through rising external uncertainties.

The Vietnamese government has deployed accommodative monetary policies and fiscal stimulus to enhance economic growth. Chakraborty noted the immediate need for stronger coordination between fiscal and monetary policies to ensure macro-financial stability. He stated, “The time has come for the country to really ensure a stable macroeconomic system… There are many factors at play here.”

Focus on Long-Term Structural Reforms

Looking ahead, Chakraborty indicated the necessity for broad structural reforms that would span various essential areas. Improvements in climate resilience, enhancement of private sector competitiveness, and ongoing state enterprise restructuring are crucial for crafting a balanced and sustainable growth model. Emphasis on tax modernization and digital transformation has also emerged as critical elements, particularly as Vietnam seeks to solidify its economic footing in a rapidly changing global landscape.

Government Initiatives Towards Growth Goals

In alignment with these forecasts, the Vietnamese government is ramping up its efforts to achieve a growth target of 8.3-8.5% for 2025. The vision extends beyond 2025, aspiring towards double-digit growth in the subsequent years. Nguyen Ba Hung, ADB’s Principal Country Economist, reiterated Vietnam’s enduring economic resilience, even amid global challenges, showcasing the country’s robust underlying fundamentals.

Navigating Global Uncertainties

Despite the encouraging outlook, the ADB cautioned against complacency, pointing out that Vietnam’s economic future remains susceptible to global uncertainties. It is essential for policymakers to remain vigilant and proactive in addressing external risks while fostering an environment conducive to sustainable growth.

As Vietnam prepares for the next stages of its economic journey, the insights provided by the ADB serve as a critical touchstone for understanding the challenges and opportunities that lie ahead. The confluence of strong institutional support, proactive policies, and ongoing reforms paints a promising picture for the nation’s economic landscape in the coming years.