Vietnam’s GDP to grow by 5% in Q2: Maybank

Vietnam’s GDP growth is likely to expand by 5% in the second quarter. - Illustrative image (Photo: VNA)

Singapore (VNA) - Vietnam’s GDP growth is likely to expand by 5% in the second quarter, and 4% in 2023 before reaching 6% in 2024, Singapore-based Maybank Research Pte Ltd said in a report released on June 27.

Accordingly, Vietnam's growth is led by the service sector, which accounts for 43.1% of the GDP. This sector is forecast to post 7% growth in the second quarter of 2023, as the fields of retail, accommodation, catering service, entertainment and passenger transport are supported by the tourism recovery.

Industry and construction, which accounts for 36.7% of GDP, is expected to grow 2% compared to a year ago, the report said, adding that the manufacturing and production sector will still remain weak due to weak external demand.

However, growth in the construction sector is predicted to be more robust thanks to increased public investment disbursement for infrastructure projects, and the Vietnamese Government’s efforts to resume real estate projects.

Experts from Mayback predicted that the drop in exports will continue in the second half of 2023 due to slowing global growth, while domestic consumption is likely to decline in the next months amid a weak labour market./.