Vietnam’s economic growth projected to rebound from 2024

By VNA   August 14, 2023 | 01:43 am PT
Vietnam’s economic growth projected to rebound from 2024
Farmers harvest lychee in the northern province of Bac Giang in June 2021. Photo by VnExpress/Ngoc Thanh
Vietnam’s economic growth is likely to rebound in 2024 and 2025, according to Dorsati Madani, Senior Economist at the World Bank (WB).

Madani noted that Vietnam's major trading partners, including the US, Europe, and China, have all experienced negative impacts in recent times due to global instabilities and reduced demand.

Low demand has dampened Vietnam's economic momentum, leading to a decrease in economic growth. The import and export turnover has declined, impacting industrial production value.

Director of the Central Institute for Economic Management (CIEM)'s General Research Department Nguyen Anh Duong said to achieve robust economic growth, Vietnam needs to do its utmost from various perspectives, including reform, policy management, and maintaining a stable and favorable economic environment for investors.

Maintaining macroeconomic stability serves as the foundation, but it's still important to create a favorable environment and improve capital absorption capacity, Duong stressed.

Duong put forth three growth scenarios for Vietnam in 2023.

In the first scenario, Vietnam’s GDP is predicted to expand by 5.34% in 2023, with exports for the whole year decreasing by 5.64% and the average Consumer Price Index (CPI) increasing by 3.43%. The country is expected to enjoy a trade surplus of $9.1 billion.

In the second one, CIEM expects the country's GDP will rise by 5.72%, with the export turnover decreasing by 3.66%, and the average CPI increasing by 3.87%. The trade balance will reach a surplus of approximately 10.3 billion USD.

The third scenario forecasts a more positive global economic context with improvements in growth recovery and credit and public investment disbursement, business environment and labor productivity; a significant reduction in supply chain disruptions, decreased inflation in the US, more favorable weather conditions, and Vietnam’s determined reforms and effective management.

CIEM expects the country’s GDP growth to surge by 6.46% in 2023. Accordingly, full-year exports will decrease by only 2.17%, while the average CPI increasing by 4.39%. The country will enjoy a trade surplus of around $6.8 billion.

Phan Le Thanh Long, CEO of AFA Group, predicted that the exchange rate of VND/USD will slightly increase by 1%.

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