Economic growth in Vietnam is set to reach 5.5% this year and gradually edge up to 6% by 2025.

This is according to the latest forecast by the World Bank.

"The economy is showing mixed signs of recovery in early 2024," it said.

Andrea Coppola, the World Bank's chief economist for Vietnam, noted that the country's exports were bouncing back, while consumption and private domestic investment were increasing at a slower pace.

Real exports are forecast to increase by 3.5% in 2024, indicating a gradual uptick in global demand.

Furthermore, there is an expected turnaround in the real estate sector later this year and next year, which will strengthen domestic demand as investors and consumers regain confidence, Coppola went on to add.

According to Vietnam News Agency, the bank's senior economist Dorsati Madani stated that the forecast hinges on the assumption that exports of manufactured industrial goods will make a significant recovery this year. 

This is expected due to a rebound growth of 8.5% compared to the same period last year in the fourth quarter of 2023, a 17.2% increase year-on-year in the first quarter of 2024, and on improving global demand.

"Investing in public infrastructure projects goes beyond immediate economic stimulus," said World Bank East Asia and Pacific practice manager for macroeconomics, trade, and investment Sebastian Eckardt. "Efforts to enhance public investment management will also address critical infrastructure gaps in energy, transportation, and logistics, which are fundamental for Vietnam's long-term economic growth."

Earlier in April the Asian Development Bank held its previous growth forecast for Vietnam at 6% for this year and 6.2% in 2025, Xinhua news agency reports.