Vietnam is said to have been avoiding the usual recessionary trends across the Asian markets and is showing better-than-average growth. (Photo: VNA) In the writing, titled “Vietnam’s macroeconomic policy and post COVID recovery”,Prof. Pankaj Jha, Director of the Centre for Security studies at India’s JindalSchool of International Affairs, cited the latest IMF reports as saying that Vietnam's real gross domestic product (GDP) in 2023 is estimated at 6.2%,and this clearly indicates Vietnam has been avoiding the usualrecessionary trends across the Asian markets and is showing better-than-averagegrowth.
He noted with an inflation rate of less than 4%, it clearly showsthat Vietnam is likely to emerge as a promising economy in Asia.
If one looks into the core fundamentals of Vietnam following theCOVID-19 pandemic, it has been clearly stated that Vietnam’s annual economicgrowth rate hovered between 6.3% and 6.5% for the decade preceding thecurrent one.
Oneof the major aspects of this better-than-average economic growth was highforeign direct investment, increased domestic consumption, sizeable increase inthe middle class, and Vietnam’s focus on promoting its manufacturing to beexport-oriented.
In terms of other critical aspects, the country has been securingloans from many other international agencies over the past few years. Withfunding and grants from different international economic agencies, it has beenable to upgrade its road, rail transport and border connectivity infrastructurealong with promoting socio-economic growth across provinces, according to thearticle.
Part of Lach Huyen seaport in Hai Phong city (Photo: VNA) Twodifferent aspects have gained international attention are Vietnam’s ranking of70th out of 190 countries in terms of ease of doing business,and its major strength being a young population with nearly 70% aged 15 - 64.
Thetourism sector is going to increase further given the fact that the country hassigned a comprehensive agreement in boosting sustainable tourism and post-COVIDrecovery at the national level. During 2022 - 2025, the cumulative average tourismgrowth rate is expected at 13.5% on average each year, the Indian expert wenton.
Thetransformation is also happening in terms of fiscal and monetary prudence aswell as undertaking reforms within the banking system and financial governance.The anti-corruption drive that the Vietnam has undertaken in the last few yearshas built the investor confidence, and it is expected that Vietnam will reapthe dividends of a better business environment, market connectivity, andrelatively comparative advantages among other competitors in Southeast Asia.
As expected, the fundamentals are getting stronger, and thereforeVietnam can witness stronger economic growth and better macroeconomic stabilityin 2023, he added./.
VNA
