Viet Nam

In July 2026, the World Bank Group reclassified Viet Nam as an upper-middle-income country — a milestone in four decades of rapid growth that began with economic reforms launched under Đổi Mới in 1986. Strategic integration into global trade and investment flows amplified this momentum, lifting millions of people out of poverty and delivering broad improvements in health care, education, and living standards.

Health outcomes have changed markedly. Infant mortality fell from 32.6 per 1,000 live births in 1993 to 11.3 in 2024, and life expectancy rose from 70.5 years in 1990 to 75 years in 2024. By 2025, 95 percent of the population was covered by national health insurance.

Education indicators have also strengthened. Viet Nam achieved universal primary education in the early 2000s. By 2024, net enrollment reached 95 percent for lower-secondary and 79 percent for upper-secondary school. On the World Bank's 2025 Human Capital Index Plus, which measures the human capital a child born today can expect to accumulate by age 18, Viet Nam ranked above other lower-middle-income economies, scoring approximately 216 out of 325.

Infrastructure access has been transformed. Nearly all households in Viet Nam have had access to electricity since 2019, up from just 14 percent in 1993. Rural access to clean water rose from 17 percent in 1993 to 54 percent in 2023. Work continues in sanitation, transport, and digital connectivity.

These achievements set the foundation for an ambitious future. Viet Nam aims to become a high-income country by 2045 through inclusive and green growth.  At COP26, Viet Nam pledged to cut methane emissions by 30 percent and halt deforestation by 2030 and to reach net-zero carbon emissions by 2050.

Sustaining this trajectory will require confronting real headwinds: an aging population, shifting global trade patterns, rapid automation, and growing climate risks. In 2025, as part of reforms to strengthen its institutions, Viet Nam reduced the number of ministries from 22 to 17 and consolidated 63 provinces into 34. Such efforts, alongside better policy delivery and sustained investment in climate resilience, social protection, and digital transformation, will be central thigh-income status.

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Viet Nam’s economic transformation is reflected in rising incomes and falling poverty. GDP per capita rose from under $500 in 1986 to $5,066 in 2025 (current US$), and the extreme poverty rate (living on less than $4.20/day) fell from 14 percent in 2010 to under 4 percent in 2025.

GDP grew 8 percent in 2025, driven by a strong rebound in manufacturing exports and a recovery in domestic demand. With a trade-to-GDP ratio of nearly 190 percent in 2025, Viet Nam is among the most open and trade-oriented economies, highly sensitive to global shifts in trade policy and supply chains.

Achieving high-income status by 2045 requires tripling current per capita income, or an average annual growth of 6 percent per year over the next two decades. Sustaining that pace will hinge on two interconnected priorities: raising productivity by deepening linkages between domestic and foreign firms and expanding access to finance and technology for SMEs; and investing in human capital to equip the workforce for a digital, knowledge-driven economy.

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Since the early Đổi Mới era, the World Bank has been a trusted partner in Viet Nam's development, financing critical sectors and supporting foundational reforms for three decades. Since 1993, the Bank has provided Viet Nam with nearly $26.6 billion in grants, concessional loans, and credits. As of September 2026, its active portfolio included 11 projects with a net commitment of $2.25 billion, plus six Advisory Services and Analytics initiatives supported by development partners.

Support has spanned sectors that are critical to inclusive and sustainable growth. In the Mekong Delta, the Integrated Climate Resilience and Sustainable Livelihoods Project (2016–24) helped over 1 million farmers adopt climate-resilient, resource-efficient practices. The Viet Nam Sustainable Agriculture Transformation Project (2015–23) enabled low-emission rice farming across 182,000 hectares, increasing farmers’ profits by 30 percent and cutting annual emissions by 1.5 million tons of carbon dioxide equivalent. The Can Tho Urban Development and Resilience Project (2016–24) protected 420,000 residents from severe flooding through upgraded infrastructure and digital risk tools. The Local Road Asset Management Program (2016–24) improved access for over 11 million people by maintaining 51,000 kilometers of rural roads. The Investing and Innovating for Grassroots Health Service Delivery Project (2019–24) improved health care in 13 provinces. By the end of the project, 65 percent of commune health stations met national standards.

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Viet Nam's private sector accounts for over 85 percent of active businesses, more than 40 percent of GDP, and nearly half of all jobs. Yet realizing its full potential requires greater access to long-term finance, reliable business infrastructure, stronger FDI-domestic linkages, and improved environmental, social and governance (ESG) performance to compete in global markets.

IFC, a member of the World Bank Group focused on the private sector, has worked to close these gaps through targeted investment and advisory support. It has mobilized financing at scale for Vietnamese businesses — investing in financial institutions such as VPBank, SeABank, HDBank, and VIB to expand credit for MSMEs and women-led businesses. Its investments in manufacturers LG Innotek and SK Leaveo support high-value production and skilled jobs, while its work in agribusiness leaders Tan Long Group and TTC AgriS  strengthens agricultural value chains.

IFC’s advisory services complement these investments: helping firms decarbonize, build green supply chains, and raise ESG standards. Work with the State Securities Commission to strengthen disclosure frameworks and deepen capital market development is supporting Viet Nam’s bid for Emerging Market status and, over time, an investment-grade sovereign rating.

Together, these efforts are helping build a private sector that is more competitive, greener, and resilient — advancing Viet Nam’s ambition to reach high-income status by 2045.

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• World Bank in East Asia - Pacific
• Australia in Viet Nam
• Switzerland in Viet Nam

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