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

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

Enhanced public investment would 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.

“During the first half of the year, Vietnam’s economy benefited from the rebound in export demand,” said WB East Asia and Pacific Practice Manager for Macroeconomics, Trade, and Investment Sebastian Eckardt. “To sustain growth momentum not only for the rest of the year but over the medium-term, the authorities should deepen structural reforms, step up public investment while carefully managing emerging financial risks.”

A special chapter of the report finds that development of capital markets would provide a vital source of long-term funding for Vietnam's economy and help the country achieve its goal of becoming a high-income nation by 2045. The report highlights key challenges, including underdevelopment of the institutional investor base and underutilisation of the Vietnam Social Security fund (VSS).

The report recommends a stronger policy framework, in which VSS could be a force in driving capital market development. Policies that would allow markets to reclassify Vietnam from Frontier Market status to Emerging Market status would help attract more foreign investors, as would reforms to enhance market transparency and investor protection. Effective coordination among financial regulators is crucial for achieving these goals.

Bac Giang doubles down on digital economy development by 2025

The northern province of Bac Giang remains steadfast in its commitment to fostering a robust digital economy by 2025, said Vice Chairman of the provincial People's Committee Mai Son.

Private economy is driving force for growth

BAC GIANG - On June 3, 2017, the 12th Party Central Executive Committee issued Resolution No.10-NQ/TW (Resolution 10) on developing the private economy to become an important driving force of the socialist-oriented market economy. As soon as the Resolution was issued, the Standing Committee of the Bac Giang Provincial Party Committee thoroughly organized and implemented it seriously, qualitatively and effectively, helping the province achieve positive economic results.

Green economy, digital economy breakthrough of Vietnam-China ties: PM

Prime Minister Pham Minh Chinh on May 14 expressed his belief that economic-investment-trade cooperation, especially in green economy and digital economy, will be a driver and a breakthrough of the Vietnam-China relationship.

Vietnam’s economy surges in Q1, aiming for 6.5% GDP growth

Vietnam’s economy in Q1/2024 shows strong recovery and positive results across various sectors, setting the stage for successful the achievement of the 2024 socio-economic development plan.

Promoting circular economy in industrial parks

The benefits of green transformation in industrial parks are both huge and lasting, according to leaders of the Ministry of Planning and Investment. However, in the short term, many challenges and obstacles have meant the transition process has not been as strong as expected.

Source: VNA