Viet Nam

Viet Nam is a remarkable development success story. Economic reforms since the launch of Đổi Mới in 1986, coupled with favorable global trends, helped transform Viet Nam from one of the world’s poorest countries to a dynamic middle-income economy in a single generation. The transformation over the past four decades has brought tangible improvements in people’s lives, lifting millions out of poverty, expanding access to health care and education, and connecting nearly all households to essential infrastructure.

Health outcomes and living standards have improved significantly. Infant mortality fell from 32.6 per 1,000 live births in 1993 to 12.1 in 2023, and life expectancy rose from 70.5 years in 1990 to 74.5 years in 2023. Access to health care expanded, with 93 percent of the population covered by national health insurance in 2023.

Viet Nam is a remarkable development success story. Economic reforms since the launch of Đổi Mới in 1986, coupled with favorable global trends, helped transform Viet Nam from one of the world’s poorest countries to a dynamic middle-income economy in a single generation. The transformation over the past four decades has brought tangible improvements in people’s lives, lifting millions out of poverty, expanding access to health care and education, and connecting nearly all households to essential infrastructure.

Health outcomes and living standards have improved significantly. Infant mortality fell from 32.6 per 1,000 live births in 1993 to 12.1 in 2023, and life expectancy rose from 70.5 years in 1990 to 74.5 years in 2023. Access to health care expanded, with 93 percent of the population covered by national health insurance in 2023.

Viet Nam achieved universal primary education in the early 2000s. In 2024, net enrollment reached 95 percent for lower-secondary and 80 percent for upper-secondary school. Viet Nam’s learning-adjusted years of schooling average 10.2 years—the second highest in ASEAN—and its human capital index is the highest among lower-middle-income countries.

By 2019, nearly all households in Viet Nam had electricity, up from just 14 percent in 1993. Rural access to clean water rose from 17 percent to 51 percent over the same period. Investments continue in sanitation, transport, and digital connectivity.

By 2045, Viet Nam aspires to become a high-income country while achieving inclusive and green growth. At the 27th Conference of Parties (COP27), held in 2022, it pledged to cut methane emissions by 30 percent and halt deforestation by 2030 and to reach net-zero carbon emissions by 2050.

Looking ahead, Viet Nam faces rising challenges, including an aging population, global trade shifts, rapid automation, and climate risks. Strengthening institutions and improving policy implementation—especially in climate resilience, social protection, and digital transformation—will be key to sustaining progress and achieving the country’s long-term goals.

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Viet Nam’s economy saw rapid, sustained growth and poverty reduction over the past three decades. GDP per capita skyrocketed from under $700 (1986) to nearly $4,500 (2023), and the extreme poverty rate (living on less than $3.65/day) plummeted from 14 to under 4 percent (2010–2023).

GDP grew by a robust 8 percent in 2025, driven by a strong rebound in manufacturing exports and a recovery in domestic demand. Growth is forecast to moderate to 6.3 percent in 2026 before rebounding to 7.6 percent in 2027. With a trade-to-GDP ratio of nearly 170 percent, Viet Nam is one of the world’s most open, trade-oriented economies, highly sensitive to global shifts.

Viet Nam’s goal of achieving high-income status by 2045 requires more than tripling current per capita income, demanding average annual growth of 6 percent for the next two decades. To sustain this, the nation must accelerate productivity, strengthen linkages between domestic and foreign firms, expand access to finance and technology for SMEs, and invest strategically in human capital to equip its workforce for a rapidly evolving economy.

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The World Bank was among the first international institutions to establish a presence in Viet Nam, supporting foundational Đổi Mới–era reforms and financing critical sectors over the past three decades. Since 1993, the Bank has provided Viet Nam with nearly $26 billion in grants, concessional loans, and credits. As of August 2025, its portfolio included nine active projects with a net commitment of $1.5 billion, as well as 13 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.

The World Bank Group actively mobilizes private capital alongside public investment to drive Viet Nam's shift toward a dynamic, market-driven economy. By strengthening infrastructure and policies and offering financing, equity, and risk guarantees, it helps build the conditions for private investment, quality jobs, and shared prosperity.

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

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