Signs of economic recovery evident: analysts

By Vien Thong   August 18, 2023 | 11:32 pm PT
Signs of economic recovery evident: analysts
Customers shop at a mall in Ho Chi Minh City. Photo by VnExpress/Nhat Thuc
Consumption and other data are flashing signs of economic recovery, but it will be gradual, analysts have said.

MB chairman Luu Trung Thai said his bank has been seeing more transactions in recent months.

"Spending is increasing and therefore I see an economic recovery coming soon," he said while speaking at a forum Thursday.

Credit interest rates are declining, he said.

"The question is whether private companies are ready to start expanding their operations."

A recent report by British bank HSBC said the decline in Vietnam’s exports slowed in July and retail sales grew by 7.1% year-on-year.

Retailer Saigon Co.op said growth in the first half of the year was steady.

"I am personally optimistic about policies such as value-added tax reduction and increasing public spending," its CEO Nguyen Anh Duc said.

International tourists are returning, and in fact for the first time in three years there were over one million arrivals in a month in July.

Tran Trong Kien, the chairman of tourism company Thien Minh Group, said the easing of visa policies such as issuing e-visas for nationals of all countries from August 15 and increasing the visa-free stay duration from 15 to 34 days for citizens of 13 countries have helped attract more visitors.

The economy is expected to gradually recover.

The World Bank’s latest forecast pegs Vietnam’s growth at 4.7% this year, 5.5% next year and 6% in 2025.

Dorsati Madani, World Bank senior economist, said there is still large demand for essential goods, and an expected hike in government employees’ salaries, along with more public investment, would boost spending.

"The U.S. and E.U. are forecast to increase their imports at the end of the year, and this will be an opportunity for Vietnam."

Taking advantage of free trade agreements would help Vietnam increase its exports, and financial sector reforms would help reduce risks, she added.

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