The economy is forecast to grow 6.1% in 2024, and 6.5% in 2025 and 2026, up from 5% last year, according to the bank’s latest bi-annual economic report on the Vietnamese economy.

Highlighting its resilience despite rising global challenges, the report titled “Taking Stock: Reaching New Heights in Capital Markets” notes that the economy is not yet back to its pre-pandemic growth path.

Enhanced public investment will provide short-term stimulus while also addressing emerging infrastructure gaps – for example in energy, transport, and logistics – which are becoming a growing constraint on growth, it said. Bank asset quality remains a concern given rising non-performing loans (NPLs) and should be closely monitored by the authorities.

Dorsati Madani, WB senior economic expert, said at the press conference that after a strong recovery in the first half of 2024, Vietnam's economic growth rate will slow down in the coming time, affected by the slowing growth of major economies in the world such as the US, Europe, and China.

The World Bank recommended that Vietnam step up the disbursement of public investment to continue to boost the economy and encourage banks to improve capital adequacy ratios, while improving infrastructure to attract private investment.

Trade diversification to further enhance integration will also be a factor to help improve the resilience of the Vietnamese economy.