(VOVWORLD) - Despite the weak external environment, the Vietnamese economy remains resilient, and recovery is expected to pick up in the near term, said Asian Development Bank (ADB) Country Director for Vietnam Shantanu Chakraborty.
 Vietnam’s economy on track to grow 5.8% this year, says the ADB |
He made the comment at a press conference in Hanoi on Wednesday when the “Asian Development Outlook (ADO) September 2023” was released.
In the report, the ADB said Vietnam’s economic growth is expected to slow down to 5.8% in 2023 and 6.0% in 2024, compared to the April 2023 forecast of 6.5% and 6.8% respectively, mainly due to the weak external demand.
Inflation forecasts have been revised down to 3.8% from 4.5% for 2023 and 4.0% from 4.2% for 2024.
The “ADO September 2023” noted that the main forces impacting the economy have been the global economic slowdown, monetary tightening in some advanced countries, and the disruption caused by exacerbated geopolitical tensions.
However, the economy remains resilient, and recovery is expected to pick up in the near term, driven by strong domestic consumption, which is supported by moderate inflation, an acceleration of public investment, and improved trade activities, said Chakraborty.
While Vietnam’s industrial production is shrinking due to falling global demand, other sectors are forecast to display healthy growth and public investment will be the key driver for economic recovery and growth in 2023, the ADB noted.
Nguyen Ba Hung, Chief Economist of the ADB said: “Economic growth is resilient amid many challenges. Therefore, the outlook is relatively optimistic. The economy is still growing in the 5.8‑6% range, but we need to be cautious about existing risks. Internal factors and proactive policies will be the basic foundation for economic growth. In particular, the speed of public investment implementation will have a relatively large impact. Public investment will create vibrant economic activities, creating a better foundation for medium and long-term development.”
ADB’s chief economist also said it is expected that import‑export will grow 5% this year and next year with the expected recovery of global demand while strong trade activities will maintain the current account surplus this year, estimated to be about 3% of GDP.