Delegates attend a seminar on the economy. (Photo: Vietnam+) Hanoi (VNA) - Viet Nam's economy still faces macro risks such as inflation and public debt in the first half of 2023, but the recovery outlook is positive in the second half, predicted a Standard Chartered economist.
The Ministry of Foreign Affairs and Standard Chartered Bank jointly organized a seminar, entitled “Global Economic and Financial Outlook Update: Implications for Vietnam” in Hanoi on Feb. 28.
Speaking at the seminar, Tim Leelahaphan, a Standard Chartered economist for Vietnam and Thailand, said that Vietnam will remain an important link in global supply chains and a destination favoured by many businesses.
The country's economy still faces macro risks such as inflation, public debt, and confidence recovery in the first half of 2023, but the recovery outlook is positive in the second half, he predicted.
The economist also said that Vietnam’s GDP growth rate may hit 7.2 percent this year and 6.7 percent in 2024.
In 2023, the inflation is predicted to increase by about 6 percent, the trade balance can be improved. However, exports will face global challenges.
Michele Wee, Chief Executive Officer at Standard Chartered Bank Vietnam Ltd., said that Vietnam has medium- and long-term development outlooks, which help increase growth potential and attract investment.
Vietnam is playing an increasingly important role in international trade activities and global supply chains, she affirmed, adding that Standard Chartered always strives to support Vietnam's recovery and sustainable growth in 2023 and subsequent years.
Standard Chartered Bank Vietnam Ltd. - Le Dai Hanh Branch, Hanoi. (Photo: Vietnam+) Speaking at the event, Assistant to Foreign Minister Nguyen Minh Hang spoke on the importance of international cooperation to take advantage of the support of international partners for socioeconomic recovery measures, and for boosting new growth drivers such as green growth and digital transformation.
Economists attending the seminar agreed that Vietnam should promote green trade and provide comprehensive support for sustainability goals in the context that accelerating the implementation of commitments to digital transformation and green transformation associated with environmental criteria is a mandatory trend for almost all countries.
They proposed Vietnamese enterprises take appropriate preparations to catch up with this inevitable trend by innovating the way of thinking, changing governance methods, and building a green export strategy.
Regarding the world economy, Standard Chartered Bank’s chief economist for ASEAN and South Asia, Edward Lee said that 2023 has started off more positively than expected. In the second half of the year, the world economy is forecast to bottom out and begin to recover, creating momentum for production and growth.
Standard Chartered experts believe that Vietnamese businesses need to have preparatory steps to catch up with global trends. (Photo: Vietnam+) Edward Lee forecasts global growth in 2023 at 2.5%, compared to 3.4% in 2022.
For the foreign exchange market, economists say that the world needs to pay attention to two factors. Firstly, the US dollar remains a currency with high interest rates that impact global foreign exchange. Secondly, despite positive signals, the US economy may fall into recession again by the end of this year./.
