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Vietnamese economy remains resilient despite weak external environment: ADB

Despite the weak external environment, the Vietnamese economy remains resilient, and recovery is expected to pick up in the near term, said Asian Development Bank (ADB) Country Director for Vietnam Shantanu Chakraborty.
Vietnamese economy remains resilient despite weak external environment: ADB ảnh 1At the press conference to release the Asian Development Outlook September 2023. (Photo: VNA)
Hanoi (VNA)– Despite the weak external environment, the Vietnamese economy remainsresilient, and recovery is expected to pick up in the near term, said AsianDevelopment Bank (ADB) Country Director for Vietnam Shantanu Chakraborty.

He made the comment ata press conference held in Hanoi on September 27 to release the Asian DevelopmentOutlook (ADO) September 2023.

In the report, the ADBsaid Vietnam’s economic growth is expected to slow down to 5.8% in 2023 and6.0% in 2024, compared to the April 2023 forecast of 6.5% and 6.8%respectively, mainly due to the weak external demand. 

Inflation forecasts arerevised down to 3.8% from 4.5% for 2023 and 4.0% from 4.2% for 2024.

The ADO September 2023noted that the main forces impacting the economy have been the global economicslowdown, monetary tightening in some advanced countries, and the disruptioncaused by exacerbated geopolitical tensions.

The weak externalenvironment, including from a subdued recovery in China, has hamperedexport-led manufacturing, thus shrinking industrial production in Vietnam, saidChakraborty.

“However, the economyremains resilient, and recovery is expected to pick up in the near term, drivenby strong domestic consumption, which is supported by moderate inflation, anacceleration of public investment, and improved trade activities,” he added.

Vietnamese economy remains resilient despite weak external environment: ADB ảnh 2The Vietnamese economy remains resilient despite the weak external environment, according to the ADB. (Photo: vtv.vn)
While Vietnam’s industrialproduction is shrinking due to falling global demand, other sectors are forecast todisplay healthy growth. Services are expected to continue expanding, supported by a revivalin tourism and the recovery of associated services. Agriculture will benefit fromrising food prices, and it is expected to expand by 3.2% in 2023 and the nextyear. Besides, public investment will be the key driver for economicrecovery and growth in 2023, the ADB noted.

The report alsohighlighted significant risks to the outlook. Internally, slow disbursements of public investmentand structural weaknesses in the real economy are the main downside risks to the economy.

Externally, asubstantial slowdown in global growth and weak recovery in China remain risksto the economic outlook. Sustained high interest rates in the US and Europe anda stronger US dollar maylead to further challenges to the recovery of external demand, and weaknesses in the Vietnamesedong exchange rate, according to the ADB./.
VNA
#Vietnamese economy #Asian Development Bank #Asian Development Outlook #economic growth #Shantanu Chakraborty #inflation #public investment #economic recovery #updated Vietnam news #Vietnamplus #Vietnam News Agency
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