World Bank tells Vietnam to stop relying on cheap labor and bank loans

The World Bank says Vietnam's economic growth model needs a fundamental shift. This means moving away from just adding more factories and relying on bank loans, towards smarter investments and deeper financial markets.

For years, Vietnam has grown by adding more workers and building more factories. The World Bank now says this approach has limits and makes the country vulnerable to global shocks. If Vietnam follows this advice, it would mean a major reorientation of its national economic strategy.