Vietnam has made remarkable economic progress over the past decades, sustaining high economic growth, according to the Organization for Economic Co-operation and Development (OECD) Economic Surveys: Vietnam 2025 report, which was released on June 20.

The report focused on analyzing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.

Extensive and continued reforms since the late 1980s have been key to this economic success, the report said.

The country’s economy has rebounded from negative external and domestic shocks in 2023. The GDP increased by 7.1% in 2024, surpassing both the previous year’s growth outcome and the government’s growth target.

However, the OECD warned that the economic growth will face headwinds and the GDP is projected to rise by 6.2% in 2025 and 6.0% in 2026, led by domestic demand while export demand will weaken.

The OECD suggested that with significant challenges ahead, Vietnam needs to advance structural reforms that will further strengthen market forces, improve social protection in light of an ageing population and make growth more sustainable.