Following strong momentum in H1, driven by front-loaded exports, the country's economy is expected to moderate over the remainder of the year as export growth normalises.

As an export-oriented economy, it remains vulnerable to slower global growth and softening demand from major trading partners. Trade-policy uncertainty may also begin to weigh on business and consumer confidence, the World Bank noted.

Over the medium term, growth is projected to ease to 6.1 per cent in 2026 before rebounding to 6.5 per cent in 2027, supported by a recovery in global trade and the country's continued appeal as a competitive manufacturing base.

To support growth and hedge against external uncertainty, the report recommends a focus on scaling up public investment, mitigating financial-sector risks, and advancing structural reforms.

"Vietnam's low public debt gives the country ample fiscal headroom -- policymakers can use well-executed public investment to close infrastructure gaps and create jobs," said World Bank division director for Vietnam, Cambodia and Laos Mariam J Sherman.

"At the same time, accelerating structural reforms to strengthen backbone services, advance green growth, build human capital, and diversify trade will help mitigate global risks and sustain long-term growth," she said.

Achieving Vietnam's high-tech ambitions and its goal of high-income status by 2045 will require not only a broad and growing pipeline of young science, technology, engineering and mathematics graduates, but also a stronger core of experts who lead research, run laboratories and turn ideas into market-ready products.

The report highlights the potential to raise public and private research and development (R&D) spending in Vietnam, complementing broader business enabling reforms. Total R&D spending in the country remains lower than more developed regional peers.