Standard Chartered Bank forecast that Vietnam's economy will recover in the second half of 2023 with GDP growth predicted to reach 7% year-on-year, from 3.7% in the first half of the year. (Photo: VNA) Hanoi (VNA) – Vietnam’s economystarted the second half of this year with positive signals which are expectedto pave the way for a better recovery in the coming time.
According to the General Statistics Office (GSO), in July, industrial production which can reflect many angles of the economy wasbetter than the previous month.
The Index of Industrial Production (IIP) inJuly 2023 not only increased by 3.9% compared to the previous month but alsoincreased by 3.7% compared to the same period last year. In particular, the IIP inJuly 2023 increased again in localities including Bac Ninh (up 23.8%), ThaiNguyen (9%), Vinh Phuc (5.8%), Binh Duong (2.3%), Ho Chi Minh City (1.9%),and Long An (0.8%)
In the first seven months, the IIP of 49 provinces and centrally-run cities increased and that of 14 others across the country decreased.
Increased industrial production probablyimplied positive signals for domestic consumption and exports. Data from theGSO showed that Vietnam’s export turnover in July 2023 reached 29.68 billionUSD, up 0.8% compared to June. Meanwhile, foreign investment attraction for thefirst time this year increased by 4.5% from the same period last year, reachingnearly 16.24 billion USD.
The figures are quite consistent with thedata on the Purchasing Managers' Index (PMI) of Vietnam's manufacturingindustry that S&P Global has just released.
Accordingly, Vietnam's PMI roseto 48.7 points in July from 46.2 points in June. Although the number was stillbelow 50 points, which showed production declined for the 5th consecutivemonth, this decline was quite mild and lowest in this period.
A factory of Hanoi Plastic Company in Hanoi. (Photo: baodautu.vn) Despite the modest increase in industrialproduction and exports, Vietnam’s tourism and services saw a positive recovery as the country welcomed more than 1 million international visitors in July, 6.5% higherthan the previous month and 2.9 times higher than the same period last year.
In general, in the first seven months, Vietnamwelcomed more than 6.6 million international visitors, 6.9 times higher thanthe same period last year.
Meanwhile, revenue from accommodation andfood services in the first seven months of 2023 reached 377.3 trillion VND (15.88 billion USD),accounting for 10.7% of the total retail sales of goods and services, up 16.3% over the same period last year. Tourism revenuereached 18.6 trillion VND, accounting for 0.5% of total retail sales of goods andrevenue of consumer services, up 53.6% over the same period last year.
Localities saw rising tourismrevenues in the last seven months included Da Nang, up 99.7%;Hanoi 89.7%; Quang Ninh 82.5%; and Khanh Hoa 75.1%.
International organisations through theirlatest reports also forecast a more positive outlook for Vietnam's economy inthe second half of the year.
Standard Chartered Bank forecast thatVietnam's economy will recover in the second half of 2023 with GDP growth predicted to reach 7% year-on-year, from 3.7% in the first half of the year.
According to the International Monetary Fund(IMF), Vietnam's economic growth will recover in the second half of 2023 thanksto the recovery of exports and loosening domestic policies.
Deputy Minister of Planning and InvestmentTran Quoc Phuong said that, to overcome economic difficulties, it is necessaryto implement drastic and effective solutions to speed up the disbursement ofpublic investment, stimulate consumption and investment demand, and boostexports as they are important growth drivers of the economy./.
