Its latest East Asia and Pacific Economic Update, released on Tuesday, said Vietnam’s growth was expected to remain robust this year before moderating slightly to 7.3% in both 2027 and 2028.
The upgrade reflects the stronger performance of the manufacturing and export sectors, particularly the production and shipment of high-tech and artificial intelligence (AI)-related products.
The World Bank expects this trend to continue, supported by increased domestic stimulus from structural reforms and expanded public investment.
However, inflationary pressures are expected to remain a concern, according to the report. Consumer price inflation in Vietnam is projected to average 4.2% in 2026, driven mainly by higher fuel, housing and utility costs.
The upgrade puts Vietnam among the stronger performers in the East Asia and Pacific region, which as a whole is projected to grow 4.5% in 2026. Malaysia and Thailand are forecast to see economic growths of 5.1% and 2%, respectively.
AI adoption gathers pace
The report highlighted Vietnam’s growing adoption of AI, adding that the regional pace and scale of adoption remain uneven across developing economies.
Among emerging-market and developing economies, Malaysia and Vietnam recorded the highest levels of individual generative AI use in early 2026.
In Vietnam, AI applications are already being used in a range of practical areas. An AI coach tailored to Vietnamese speakers has become one of the country’s popular language-learning tools, while AI-powered medical imaging is helping under-resourced hospitals improve diagnoses.
Small hotels and tour operators are also using AI to generate promotional visuals and apply dynamic pricing at lower cost.
The World Bank said these examples illustrate the potential of what it calls "Small AI" the adoption or adaptation of existing AI tools for specific local needs rather than developing costly frontier models.
For most developing economies, adopting and adapting existing technologies is likely to deliver greater benefits in the near term, particularly when tools are tailored to local languages and economic conditions.
But the report warned that AI adoption alone would not be enough to deliver broad-based productivity gains. Businesses face constraints including skills shortages, high adoption costs and concerns over security and data privacy.
It also noted that demand for AI-related skills in emerging and developing economies in the region remains relatively low compared with other emerging markets, pointing to the need for stronger investment in skills and education.
Reliable electricity and sound governance are also important for attracting investment in data centers. Southeast Asian economies could benefit from opportunities in semiconductor manufacturing and other parts of the AI value chain.
The World Bank said governments should create an enabling environment for AI adoption by improving digital and energy infrastructure, access to capital and skills, while also using AI themselves to improve public services.
Source: VnExpress.net
