Vietnam’s economy showed strong recovery in the first half of the year and is expected to maintain growth despite global uncertainties, according to Shantanu Chakraborty, ADB Country Director for Vietnam. The recovery was driven by industrial production, robust external demand for electronics, a tourism rebound, and stable agriculture.
ADB predicts inflation at 4%, with risks from geopolitical tensions potentially affecting oil prices and inflation.
ADB experts recommend boosting domestic demand through fiscal stimulus, public investment, and low interest rates while balancing price stability with growth.
The country’s monetary policy should continue to aim for both price stability and growth, despite limited policy space.
Any additional loosening of monetary policy should be closely coordinated with an expansionary fiscal policy, along with accelerating institutional reforms to support the economy, they said./.
