Yarn production at Vu Ninh Industrial Cluster, Kien Xuong district, Thai Binh province (Photo: The Duyet/ VNA)

In the latest East Asia and Pacific Economic Update Report, the World Bank said the global recession was a big shock to Vietnam’s economy but that economy has maintained a growth rate that many other countries around the world only dream of.

According to the report, Vietnam’s economy is showing clear signs of recovery. This recovery is driven by three main factors. First, external demand for Vietnam’s exports has gradually recovered. Second, authorities have promoted public investment disbursement. Third, despite the strong shock that hit the economy, private consumption has recovered strongly.

The WB’s Chief Economist said Vietnam has attracted a lot of international attention this year thanks to visits by world leaders to Vietnam. Vietnam is considered an attractive destination for international investors thanks to its economic and political stability and steady integration into the global economy.

Andrea Coppola said the international context is expected to remain challenging, the main risks being geopolitical instability, the impact of conflicts on energy prices, and the financial stress associated with a rise in long-term interest rates. The WB still believes, however, that Vietnam's exports to its principal trading partners will recover next year, although it may be at a slow pace.

According to WB forecasts, Vietnam's economy will grow about 5.5% next year, and 6.0% in 2025.