The economy maintained strong growth across all sectors in the first half of the year, with gross domestic product expanding 8.2%, up from 7.5% in the same period of 2025, ADB said in a report released Wednesday.

The country's growth forecast is supported by domestic consumer purchasing power and steady foreign direct investment (FDI) inflows. The latest forecast is about 0.6 percentage points higher than the projection issued by the bank in April.

As of the end of August, total registered FDI in Vietnam was estimated at nearly US$40.6 billion, an increase of more than 55% from a year earlier. Of that amount, newly registered capital reached nearly $22 billion, up approximately 97%.

Cai Mep - Thi Vai Terminal in HCMC, August 2025. Photo by VnExpress/Truong Ha

Total retail sales of goods and consumer service revenue rose more than 13% year over year in the first eight months. After excluding price factors, growth was 7.6%, 0.1 percentage points higher than in the same period of 2025.

According to the ADB, the data indicate that economic growth has been driven primarily by investment. But, tax-reduction measures, including a two-percentage-point cut in the value-added tax through the end of this year, will also help sustain domestic consumption.

The ADB said investment remains the principal driver of GDP growth, led by public investment and capital from FDI and private investors flowing into major infrastructure projects.

As of early September, more than VND513.3 trillion ($19.7 billion) in public investment capital had been disbursed, equivalent to 50.2% of the annual plan.

Major domestic corporations are playing an increasingly important role in urban and infrastructure development, with substantial funding expected to be raised from banks. According to the ADB, this could provide strong momentum for the construction sector and short-term economic growth.

The organization also warned that greater reliance on bank borrowing could increase liquidity, maturity-mismatch and credit-concentration risks. The sustainability of future growth will therefore depend on whether major infrastructure projects generate higher productivity and sufficient cash flow to repay the related debt.

In addition, the economy faces the risks of unstable global trade, geopolitical tensions and rising energy costs through the end of the year. These challenges create further risks for exports, investment and inflation.

Based on these factors, the ADB forecasts Vietnam's inflation at 4.3% this year before easing to 4% in 2027. Economic growth next year is projected at approximately 7.6%.

Last month, several international organizations raised their GDP growth forecasts for Vietnam. UOB Bank said GDP could increase 8.5% in 2026, while the International Monetary Fund estimated growth at 7.5%. Standard Chartered Bank raised its GDP growth forecast to 9.5%, followed by 11% the next year.

In Southeast Asia, ADB forecasts Indonesia to rank second in growth at 5.2%, followed by Singapore (5%) and Malaysia (4.9%).