The Asian Development Bank (ADB) has raised its growth forecasts for Vietnam to 6.4% and 6.6% in 2024 and 2025, respectively, from its previous predictions of 6% and 6.2%.

The new forecasts were driven by stronger trade activities and ongoing fiscal stimulus measures, according to the bank’s latest edition of Asian Development Outlook released on December 11.

Strong trade performance, a resurgence in export-led manufacturing, and ongoing fiscal stimulus measures drove Vietnam’s economic growth to 6.8% for the first three quarters of 2024, the report states.

The robust rebound in export-led manufacturing and trade, bolstered by the resilient US economy, is expected to continue supporting GDP growth, according to the report.

Accelerated public investment and accommodative fiscal and monetary policies are anticipated to further stimulate domestic demand. Despite the severe impacts caused by Typhoon Yagi in various parts of the country, the swift government response and recovery efforts limited the impacts on growth, the report says.

Vietnam’s inflation forecast was also revised slightly down to 3.9% for 2024, according to the report. The country’s prudent and flexible monetary policy, combined with subdued global oil prices due to the global economic slowdown, is expected to keep inflation in check at 4.0% in 2025, according to the report.