Global economic perspective remains optimistic in light of international trade transformations
In the dynamic landscape of Southeast Asia, Vietnam stands out as a beacon of growth and development. UOB, a leading bank, has maintained its forecast for Vietnam's economic growth in 2025 at 6%, a testament to the country's resilience and potential.
One of the key drivers of this growth is the increased foreign direct investment (FDI). In the first eight months of 2025, Vietnam recorded over $26 billion in registered FDI, marking a 27% increase year-on-year. This surge in FDI can be attributed to three key factors: a stable domestic economy, strong export momentum, particularly to the US and Asia, and Vietnam's selective FDI strategy prioritizing high technology, renewable energy, and sustainable manufacturing.
The government's emphasis on public investment is another significant factor. Experts believe that if implemented well, public investment can provide a short-term boost to growth and lay the foundation for Vietnam to become a regional infrastructure hub supporting both trade and global supply chains. The shift from greenfield projects towards expansion and mergers indicates that existing investors are placing long-term confidence in Vietnam.
UOB, with its commitment to sustainability, is a key player in this growth story. The bank has disbursed about $44 billion in sustainable financing across ASEAN, with a focus on renewable energy and green buildings. In Vietnam, UOB has supported more than 20 green financing projects, spanning various sectors like agriculture, aquaculture, renewable energy, sustainable manufacturing, and green buildings.
To further strengthen FDI inflows, Vietnam is shifting its FDI strategy towards a more selective, quality-focused approach. Three priority areas for Vietnam include accelerating public investment disbursement, improving the regulatory framework, particularly in land laws and ESG regulations, and enhancing workforce quality and local supply chains.
UOB is investing in this growth narrative. The bank has signed five MoUs with government agencies and leading industry players in ASEAN and Greater China to bolster regional economic integration and facilitate foreign direct investment. UOB Vietnam has also set a target for at least 30% of new loans to mid-sized corporates in 2025 to be allocated to sustainable projects, particularly in priority sectors such as renewable energy, green manufacturing, circular economy, sustainable agriculture, and green buildings.
The State Bank of Vietnam is expected to hold rates steady due to tariff risks from the United States. However, the positive spillover effect of the government's emphasis on public investment is making Vietnam more attractive to FDI. UOB Vietnam offers competitive lending rates combined with trade finance solutions to support working capital needs for corporate clients, particularly those in trade and export-import.
In conclusion, Vietnam's economic growth in 2025 is expected to be robust, driven by increased FDI and strategic public investment. UOB, with its commitment to sustainability and competitive offerings, is well-positioned to support this growth. As Vietnam continues to invest in infrastructure, regulatory frameworks, and workforce quality, it is poised to become a key player in the regional and global economy.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Nepal's Journey: Evolution from Street Life to Political Power
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
