World Bank: Vietnam leads growth in East Asia

VTV.vn - According to the report, Vietnam is likely to lead the region with a growth rate of 6.6% in 2025 – the highest among developing economies.

Vietnam's economic growth is forecast to lead the East Asia- Pacific region this year.

Vietnam's economic growth is forecast to lead the East Asia- Pacific region this year, with the region expected to grow 4.8%, down slightly from 5% last year, according to an updated report by the World Bank (WB) released today.

Vietnam continues to stand out with a steady recovery in production and consumption. The World Bank highly appreciates the ability to flexibly manage policies, effectively control inflation and support businesses to recover after the pandemic. According to the WB, about 80% of new jobs in Vietnam are created by young, dynamic businesses (established in the past few years). This is a positive signal, showing the strong vitality of the private sector. The WB recommends that the important solution is not only to expand export markets, but also to increase domestic demand, innovation and strong digital transformation in the private sector. Improving labor productivity is considered the key to shifting to a high-quality growth model.

Vietnam is likely to lead the region with a growth rate of 6.6% in 2025 – the highest among developing economies, according to the report. Mongolia and the Philippines are next, with growth of 5.9% and 5.3%, respectively, while China, Cambodia and Indonesia are all forecast to grow around 4.8%. At the lower end of the growth spectrum, the Pacific Island countries are forecast to grow at around 2.7% and Thailand at 2%.

The East Asia-Pacific Economic Update also mentioned the impact of the new US tariff policy – ​​a factor that is affecting trade of many export-dependent economies in the region.

East Asia-Pacific economies need to avoid relying on short-term stimulus packages and focus on long-term structural reforms, including improving the quality of education, simplifying business procedures and increasing effective public investment, said Aaditya Mattoo, Chief Economist for the East Asia-Pacific region of the World Bank.

For Vietnam, the important solution is not only to expand export markets, but also to strengthen domestic demand and increase product value. Accelerating digital transformation, improving governance capacity and innovation in the private sector will be factors that create the foundation for a new growth phase. In addition, the process of improving labor productivity is considered the key to transitioning to a quality growth model, where high value-added economic sectors play a leading role. Focusing on institutional reform, promoting innovation and upgrading labor skills will help Vietnam not only maintain a high growth rate but also improve the quality of development, towards the goal of inclusive and sustainable growth.

Source: https://vtv.vn/world-bank-viet-nam-dan-dau-tang-truong-tai-dong-a-100251007221353701.htm