The bank attributed Vietnam's strong outlook to resilient manufacturing, sustained exports and investment, as well as stable domestic demand.

Inflation is projected to rise from 3.3% in 2025 to 4.0% in 2026, before easing to 3.8% in 2027.

Vietnam stands out in the ADB's latest report as the bank lowered its growth forecast for developing Asia and the Pacific to 4.9% in 2026, down from 5.5% in 2025 and 0.2 percentage points lower than its April projection.

According to the report, prolonged disruptions in global energy markets triggered by the conflict in the Middle East have weighed more heavily on the regional outlook than previously expected.

ADB nevertheless kept its 2027 regional growth forecast at 5.1%, expecting economic activity to recover gradually as these pressures ease.

The bank noted that uncertainties in global energy markets are likely to persist despite the temporary agreement reached between the United States and Iran in June.

The July ADO was finalised before the latest escalation of tensions involving the two countries.

As rising energy costs spill over into fertiliser prices, other commodities and supply chains, inflationary pressures across the region are expected to be elevated.

Regional inflation is now forecast at 4.3% in 2026, up from 3.0% in 2025 and 0.7 percentage points higher than ADB's April forecast, while the projection for 2027 remains unchanged at 3.4%.

“Durable implementation of the framework agreement would help normalise global energy markets, but the pace of adjustment is highly uncertain with significant downside risks,” said ADB Chief Economist Albert Park.

“Economic growth in developing Asia and the Pacific remains resilient, but persistent headwinds caused by the conflict require a careful policy balance between supporting growth and containing inflation”, he noted.

ADO July 2026 warns that renewed conflict escalation and prolonged geopolitical uncertainty are key risks to the region’s outlook. These could further tighten energy markets, raise risk premia, and intensify inflationary and external pressures. Tighter global financial conditions pose additional risks, with sovereign bond yields and borrowing costs rising, and fiscal deficits projected to widen in several economies. Higher tariffs and elevated trade policy uncertainty could also weigh on activity, while rising fertiliser prices continue to threaten agricultural output and food security.

Except for developing East Asia, ADB lowered its 2026 growth forecasts for most subregions. China's economy is expected to grow 4.6% in 2026 and 4.5% in 2027, supported by robust exports and continued infrastructure investment. India’s growth forecast is revised down to 6.6% this year, as higher energy costs weigh on domestic demand, and maintained at 7.3% for next year.

Growth projections for Southeast Asia and the Pacific are also trimmed, reflecting weaker domestic demand and tourism, rising inflation, and higher import costs.

Vietnam’s economy stays resilient despite global challenges, says ADB

VOV.VN - Vietnam’s economy is forecast to maintain strong growth in the coming years despite rising global uncertainties, according to a report released by the Asian Development Bank (ADB) on April 10.