Vietnam’s economic growth projected to rebound in 2024: WB Economist

Vietnam’s economic growth is likely to rebound in 2024 and 2025, according to Dorati 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.

Vietnam’s economic growth projected to rebound from 2024 | Business | Vietnam+ (VietnamPlus)
In the first scenario, Vietnam’s GDP is predicted to expand by 5.34 per cent in 2023.

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 favourable economic environment for investors.

Maintaining macroeconomic stability serves as the foundation, but it's still important to create a favourable 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 per cent in 2023, with exports for the whole year decreasing by 5.64 per cent and the average Consumer Price Index (CPI) increasing by 3.43 per cent. The country is expected to enjoy a trade surplus of 9.1 billion USD.

In the second one, CIEM expects the country's GDP will rise by 5.72 per cent, with the export turnover decreasing by 3.66 per cent, and the average CPI increasing by 3.87 per cent. 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 labour productivity; a significant reduction in supply chain disruptions, decreased inflation in the US, more favourable weather conditions, and Vietnam’s determined reforms and effective management.

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

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

The American University in Vietnam (AUV): Developing Human Capital to Advance Sustainable Growth
Economic growth target kept unchanged for the rest of 2023: Prime Minister
Vietnam expects more positive economic recovery in H2
Recovery in FDI attraction, tourism helps Hanoi’s lodging service rebound
Vietnam ranks among top 5 economies with leading e-commerce growth globally
(Source: VNA)