Việt Nam to become Asia-Pacific region's fastest growing economy in 2026

Workers at a garment company in HCM City. — VNA/VNS Photo Hồng Đạt

In its newly released ‘Global Economic Prospects’ report, the World Bank (WB) predicts that Việt Nam's GDP growth in 2025 will reach 6.6 per cent. This figure increased by 0.1 percentage points compared to its previous forecast in October 2024.

Notably, the WB forecasts Việt Nam's GDP growth at 6.3 per cent in 2026.

Although this is 0.2 percentage points lower than its earlier projection, Việt Nam is expected to lead the region in GDP growth.

It could surpass major economies including Mongolia (6.1 per cent), the Philippines (6 per cent), Thailand (5.1 per cent) and China (4 per cent).

Overall, the WB forecasts GDP growth in the East Asia and Pacific (EAP) region to gradually decline in the years to come, from 4.6 per cent in 2025 to 4.1 per cent in 2026, primarily due to China's economic slowdown.

Excluding China, EAP economies are projected to maintain a growth rate of 4.7 per cent in 2026, driven by strong domestic demand.

In 2024, growth in EAP economies excluding China is estimated at 4.8 per cent, higher than the 4.3 per cent recorded in 2023, supported by the recovery in trade, domestic tourism and internal demand.

The WB highlighted Việt Nam as a bright spot in regional economic growth, thanks to its robust export capabilities.

In the near future, the WB warns of potential economic risks for the region, mainly due to global trade uncertainties and China's economic downturn. Other risks include escalating geopolitical tensions and global inflation.

Natural disasters caused by climate change are also expected to continue pressuring regional growth prospects.

Globally, the WB forecasts economic growth at 2.7 per cent for both 2025 and 2026, consistent with the growth rate in 2024.