Vietnam’s GDP growth outpaces regional peers, 6.5% in 2025: Oxford Economics
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Vietnam’s GDP growth can reach 6.5% in 2025, continuing to outperform regional peers in the ASEAN-6 group, Oxford Economics said in a Monday report.
Oxford Economics noted that with a full-year growth likely at 6.7% this year, Vietnam has already been the region’s outperformed.
For 2025, Vietnam’s economic growth will be driven by the strong manufacturing sector, with contributions from machinery and textiles.
The country is a hub for assembling, packaging, and testing chips, and the chip-led tailwind will continue next year, though the boost will be weaker than in 2024. Oxford Economics expects some “softness” in the near term.
The domestic sector outlook remains bright. Solid wage growth, driven by FDI job creation, should support private consumption. With the number of operating enterprises still growing in annual terms, asset accumulation will likely be stronger in 2025, it predicted.
However, FDI inflows may see a temporary slowdown in early 2025 while awaiting possible U.S. tariff announcements against Vietnam. Upside risks are present, with a possible boost from the front-loading of orders driven by U.S. tariff fears, Oxford Economics stressed.
The organization expects credit growth should be better in 2025. Recent changes to credit controls and a better domestic business sector should provide some support to credit growth. However, the drag from real estate will likely last until end-2025, and offloading bad debt will take some time.