Vietnam needs $300B in annual investment, productivity gains to achieve double-digit growth
Vietnam needs to mobilize and efficiently deploy investments of US$300 billion a year and improve productivity to realize its target of double-digit economic growth, a government economist has said.
Vietnam requires substantial investment and productivity improvements to achieve double-digit economic growth, according to experts at the 2026 Autumn Economic Forum. The country's economy must see an investment-to-GDP ratio of 35-40% to meet its goal of high-income status by 2045. To achieve this, Vietnam needs to mobilize $280-300 billion annually, with the private sector and foreign investment covering the remaining 70% after accounting for public investment.
Developing a robust capital market is crucial, as banks currently only contribute 51% of investment. Lowering Vietnam's capital-output ratio from its current six to four.5 through increased investment in science, technology, education, and healthcare is also essential. Meanwhile, improving productivity across all sectors, particularly manufacturing, is necessary.
Currently, Vietnamese manufacturing workers generate only $6.7 in value added per hour, compared to China's $16.3. Enhancing total factor productivity, which measures how efficiently an economy turns inputs into outputs, will be key to achieving double-digit growth.
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