Illustrative image

The projection remains unchanged compared to the bank's forecast of 5.5 percent in 2024 and 6 percent unveiled earlier this year.

WB East Asia and Pacific Chief Economist Aaditya Mattoo attributed Viet Nam's 5 percent growth projection to global trade resilience as well as the country's post-pandemic recovery resilience.

In addition, no urgent reforms have been undertaken in real estate as seen in services, investment improvement, and investment disbursement, along with cooperation among localities.

However, he stated Viet Nam is a country with great potential, and it should not be satisfied with the 5 percent projection while in fact it is likely to grow by 8 percent.

According to the report titled Firm Foundation of Growth, the East Asia and Pacific region is growing faster than the rest of the world, but slower than before the pandemic. While recovering global trade and easing financial conditions will support regional economies, increased protectionism and policy uncertainty will dampen growth.

The region is projected to expand by 4.6 percent this year, up from 4.4 percent last year.

The East Asia and Pacific region is making a strong contribution to world economic growth, even as it faces a more challenging and uncertain global environment, aging population and the impacts of climate change, said World Bank East Asia and Pacific Vice-President Manuela V. Ferro.

Countries of the region can sustain their growth momentum by accelerating the opening of more activities to private sector investment, resolving financial sector challenges, and boosting productivity, he added.

In 2023, Viet Nam's GDP grew by 5.05 percent. The nation's GDP was at US$430 billion. GDP per capita was at US$4,284, up 3.88 percent year-on-year.

Viet Nam's GDP was estimated to expand 5.66 percent in the January-March period, the highest rate over the same period since 2020, according to the General Statistics Office (GSO)./.