HANOI: Vietnam is projected to lead the region with a growth rate of 6.6% in 2025 – the highest among developing economies – according to the World Bank East Asia and Pacific Economic Update, October 2025 edition, which forecasts regional growth of 4.8%, down slightly from 5% in 2024.
The World Bank noted a striking paradox in the region’s inclusive development model: relatively strong growth paired with a shortage of quality employment.
Most new jobs have been created in low-productivity informal service sectors, while young workers continue to face challenges entering the labour market and female participation remains low.
Although retail sales have increased and industrial production remains on an upward trend, consumer and business confidence have not fully recovered from the Covid-19 pandemic.
Exports are showing signs of acceleration as companies anticipate adjustments to United States tariffs, but new orders are slowing.
The World Bank projects that regional growth will ease further to 4.3% in 2026, reflecting the effects of trade barriers, geopolitical uncertainty and continued reliance on fiscal stimulus rather than deeper structural reforms.
Despite the slowdown, the report regards East Asia – including South-East Asia – and the Pacific as ‘a bright spot in the global economic landscape; thanks to strong resilience and ample reform potential.
However, it stresses that the region needs “a new wave of reforms” focused on boosting labour productivity and creating higher-quality jobs to sustain growth.
Amid a volatile regional landscape, Vietnam stands out for its stability and strong recovery in manufacturing and domestic consumption.
The World Bank praised Vietnam’s sound policy management in maintaining macroeconomic stability, controlling inflation and supporting enterprise recovery post-pandemic. — Viet Nam News/ANN
