Domestic factors to drive economy in 2025


Infrastructure boost: A billboard for the Ho Chi Minh City Metro. Big projects such as the metro line are expected to spur Vietnam’s economy. — Bloomberg

HO CHI MINH CITY: Domestic factors, including a ramp-up in government infrastructure spending, a revival of the real estate market and a recovery in consumer spending, will help Vietnam sustain gross domestic product (GDP) growth of around 6.5% next year, Michael Kokalari, chief economist at VinaCapital, says.

Exports to the United States and foreign tourist arrivals surged this year, but the growth of both was set to slow dramatically next year, Kokalari said in his recent Looking ahead at 2025 report.

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