Vietnam's economy is projected to grow at 6.5% year-on-year in FY25, surpassing its ASEAN-6 peers, according to a recent report by Oxford Economics. This growth is primarily driven by the manufacturing sector, particularly in machinery and textiles, which have shown robust performance [f1be8042].
The strong fundamentals of Vietnam's manufacturing sector position it as a key player in the global supply chain, especially as a semiconductor hub. This growth is further supported by solid wage increases resulting from foreign direct investment (FDI) job creation, which is expected to bolster private consumption [f1be8042].
Additionally, the ADB has recently revised its growth forecast for Vietnam to 6.6% for 2025, reflecting optimism about the country's economic resilience and trade performance [bce47af3]. The ADB highlighted that accelerated public investment and favorable fiscal policies will stimulate demand, contributing to this positive outlook [bce47af3].
However, both reports caution about potential risks, including geopolitical tensions and trade fragmentation, which could impact economic stability. There are also concerns about currency pressures that may increase inter-bank rates, potentially slowing the recovery of consumption [f1be8042]. Despite these challenges, the overall sentiment remains optimistic as Vietnam continues to navigate a complex economic landscape, with its strong manufacturing sector playing a crucial role in future growth [f1be8042].