Malaysia media forecasts Vietnam’s bright medium-term outlook

Ho Chi Minh City, the southern economic hub of Vietnam (Photo: VNA)

Hanoi (VNA) – Malaysia’s digitalnewsasia.com on December 20 reported findings from consulting firm Oxford Economics’ recent research commissioned by the Institute of Chartered Accountants in England and Wales (ICAEW), saying that it offers a positive assessment of Vietnam's economy in 2023 and forecasts a bright outlook for a medium term.

According to Oxford Economics, Vietnam has been a regional export outperformer this year, delivering a year-on-year GDP growth of 5.3% in the third quarter from 4.1% in the previous quarter. This was led by a strong recovery in the manufacturing sector thanks to rising export values amidst improvements in electronics exports, especially to China. 

Carrying on from the Government’s increased public investment in the third quarter, there is still room to boost investment spending in the next quarter, it said.

About the Southeast Asia economy, it said economic momentum picked up in the third quarter, but there are concerns about potential headwinds in 2024, including slow global growth, tourism bright spots losing their shine, and declining private consumption. 

Southeast Asia has displayed resilient economic momentum in Q3, with improved trade conditions driving GDP growth to surpass expectations. Export growth in Singapore, Malaysia, and Vietnam expanded from Q2 to Q3, with Singapore and Vietnam enjoying notable turnarounds with both markets having significant footholds in the electronics trades.

However, Southeast Asia's exports will remain weighed down by a prolonged global weakness, particularly from US and China.

While inflation is likely to resume its decline further in the future, analysts are not expecting rate cuts until Q2 2024./.