ADB maintains 6% growth forecast for Vietnam"s economy

The Asian Development Bank (ADB) has maintained its earlier growth projection for Vietnam this year despite lingering uncertainties in the external environment. Vietnam’s economy is expected to grow at 6.0% and 6.2% in 2024 and 2025, respectively, heard a conference held in Hanoi on April 11.

ADB maintains 6% growth forecast for Vietnam's economy hinh anh 1

ADB maintains 6% growth forecast for Vietnam's economy (Photo: VNA)

The Asian Development Bank (ADB) has maintained its earlier growth projection for Vietnam this year despite lingering uncertainties in the external environment. Vietnam’s economy is expected to grow at 6.0% and 6.2% in 2024 and 2025, respectively, heard a conference held in Hanoi on April 11.

At the event, Nguyen Ba Hung, ADB Chief Economist in Vietnam, said slowing global demand and high international interest rates have impacted Vietnam's growth in 2023. However, the rapid shift to pro-growth monetary policy and large-scale public investment is one of the key measures taken to sustain growth recovery.

A relatively broad-based restoration in export-led manufacturing and services and the stable performance of the agriculture sector are expected to support Vietnam’s recovery momentum. Positive inflows of foreign direct investment (FDI) and remittances, a sustained trade surplus, recoveries in domestic consumption, and continued fiscal stimulus characterised by a substantial public investment programme are seen as key to boosting growth in 2024.

ADB Country Director for Viet Nam Shantanu Chakraborty said that Vietnam’s economy is expected to grow at a solid pace this year and the next, despite a challenging global environment. However, global geopolitical uncertainties and domestic structural fragilities could impact the outlook. Therefore, policy measures in 2024 will need to combine short-term growth support measures to strengthen domestic demand with long-term structural remedies to promote sustainable growth.

Softened global demand caused by a slow economic recovery and delayed normalisation of interest rates in the US and other advanced economies, coupled with continued geopolitical tensions, are likely to hamper a full recovery of Vietnam’s export-led growth in 2024.

To accelerate growth, stronger measures are required to address domestic structural fragilities, such as heavy reliance on FDI-led manufacturing exports, weak linkages between manufacturing export industries and the rest of the economy, incipient capital markets, an overreliance on bank credit, and complex regulatory barriers to business.

Public investment remains a catalyst for Vietnam’s economic growth, so its effective implementation is crucial. Although the Government has applied various measures to expedite public investment and enhance effective execution, more systematic measures are required to improve legal and regulatory processes and reduce constraints on efficient delivery./.

Source: VNA
en.vietnamplus.vn

Related News

Latest News

PM orders building socio-economic development plans, budget estimates for 2025

PM orders building socio-economic development plans, budget estimates for 2025

Prime Minister Pham Minh Chinh on May 22 signed a directive on the building of the socio-economic development plans and state budget estimates for 2025.
Dong Nai aims to become one of Vietnam

Dong Nai aims to become one of Vietnam's largest economic centres by 2030

The southern province of Dong Nai aims to become one of Vietnam's three largest economic centres, after Hanoi and Ho Chi Minh City, according to the province's development goals for 2030.
To Lam becomes new State President

To Lam becomes new State President

The 15th National Assembly (NA) on May 22 elected To Lam as the President of the Socialist Republic of Vietnam.
Increase foreign investment resources from improving the business environment

Increase foreign investment resources from improving the business environment

VCN - In the two years 2024-2025, the proportion of foreign invested enterprises (FDI) expected to expand production and business will decrease compared to previous years, reflecting a more cautious trend of FDI enterprises due to the impact of the current unpredictable global economic context.

More News

Rising middle class pushes wealth management potential in Vietnam

Rising middle class pushes wealth management potential in Vietnam

The personal financial assets market in Vietnam is forecast to reach hundreds of billions of US dollars in the next few years, providing significant opportunities for wealth management services.
The carbon credit market opens up many opportunities for businesses

The carbon credit market opens up many opportunities for businesses

VCN - Vietnam has great potential for carbon credit supply. Many businesses have proactively invested in technological innovation to participate in this market.
Quang Ninh: Administrative reform, improving infrastructure, promoting import and export

Quang Ninh: Administrative reform, improving infrastructure, promoting import and export

VCN - Import-export activities through border gates in Quang Ninh province have prospered thanks to the implementation of accompanying solutions to support businesses and the determination and efforts of authorities at all levels.
National Assembly opens 7th session

National Assembly opens 7th session

The 15th National Assembly (NA) convened its 7th sitting in Hanoi on May 20 morning, with the opening session broadcast live by several national and NA television and radio channels.
The quality of economic management at the provincial level continues to improve

The quality of economic management at the provincial level continues to improve

VCN - In production and business activities, support from local authorities plays a very important role. The good news is that in a context of economic pressure, businesses have appreciated the positive efforts of provincial and city governments in improving the business environment compared to before.
Promoting e-commerce human resources training in Việt Nam

Promoting e-commerce human resources training in Việt Nam

E-commerce staff are quite young and can quickly accept new technology, which could start businesses in the digital environment.
National Assembly to work on personnel affairs on May 20

National Assembly to work on personnel affairs on May 20

Personnel work will be tabled right after the seventh session of the National Assembly (NA) opens on May 20, according to Secretary General of the NA and Chairman of its Office Bui Van Cuong.
High-quality science, technology human resources key to sustainable growth

High-quality science, technology human resources key to sustainable growth

To achieve sustainable development and help the economy take off, high-quality human resources and advancements in science and technology should be seen as key components, according to insiders.
Vietnam, France look to boost economic partnership

Vietnam, France look to boost economic partnership

Deputy Minister of Planning and Investment Tran Quoc Phuong and French Minister Delegate for Foreign Trade, Economic Attractiveness, Francophonie and French Nationals Abroad Franck Riester co-chaired the 8th session of the Vietnam-France High-Level Dialogue on Economy in Paris on May 17.
Read More

Your care

Latest Most read
PM orders building socio-economic development plans, budget estimates for 2025

PM orders building socio-economic development plans, budget estimates for 2025

Prime Minister Pham Minh Chinh on May 22 signed a directive on the building of the socio-economic development plans and state budget estimates for 2025.
Dong Nai aims to become one of Vietnam

Dong Nai aims to become one of Vietnam's largest economic centres by 2030

The southern province of Dong Nai aims to become one of Vietnam's three largest economic centres, after Hanoi and Ho Chi Minh City, according to the province's development goals for 2030.
To Lam becomes new State President

To Lam becomes new State President

The 15th National Assembly (NA) on May 22 elected To Lam as the President of the Socialist Republic of Vietnam.
Increase foreign investment resources from improving the business environment

Increase foreign investment resources from improving the business environment

VCN - In the two years 2024-2025, the proportion of foreign invested enterprises (FDI) expected to expand production and business will decrease compared to previous years, reflecting a more cautious trend of FDI enterprises due to the impact of the curren
Rising middle class pushes wealth management potential in Vietnam

Rising middle class pushes wealth management potential in Vietnam

The personal financial assets market in Vietnam is forecast to reach hundreds of billions of US dollars in the next few years, providing significant opportunities for wealth management services.
Mobile Version