Specifically, the international lender predicted that Viet Nam's economy would expand by 6.8 percent in 2025 and 6.5 percent in 2026.

The World Bank said export growth was seen moderating to 12.1 percent this year, from 14 percent growth in 2024. Inflation was forecast at 3.5 percent in 2025.

To navigate growing uncertainties, the report recommended strategies to sustain growth, including ramping up public investment, addressing financial sector vulnerabilities, strengthening energy resilience, and pushing forward with structural reforms.

Meanwhile, foreign direct investment (FDI) inflows are projected to remain steady - at about US$25 billion disbursed - reflecting Viet Nam's continued appeal to global investors.

Increased public investment and an accelerated recovery in the real estate market, thanks to faster project clearance, could support domestic demand, partially offsetting external risks.

"Viet Nam is projected to maintain robust economic growth over the next two years, but it can use its fiscal space to better prepare for heightened uncertainties", said Mariam J. Sherman, World Bank Director for Viet Nam, Cambodia and Laos.

"Growth-enhancing public investment, especially in urban, transport, and energy infrastructure will be critical, provided the authorities can both scale it up and ensure that spending is efficient," she said.