A production line at VinFast's factory (Photo: Vehicle) Hanoi (VNA) – Vietnam’s economy is likely to stronglyrecover in the second quarter of 2023, said Tim Leelahaphan, Economist forThailand and Vietnam at Standard Chartered.
In an interview granted to Lao Dong Newspaper, Leelahaphan said Vietnam had experienced a difficult year in 2022, with foreign exchangereserves decreasing remarkably, along with difficulties related to real estateand bond markets, and liquidity problem.
However, the economic situation has gradually improved in the first quarterof 2023, he said, pointing to the recovery of the Vietnam dong and citing Standard Chartered's forecast that the country's GDP growth could reach 7.2% this year and 6.7% in 2024.
Tim Leelahaphan, Economist for Thailand and Vietnam at Standard Chartered (Photo: laodong.vn) Although Vietnam's economy still faces some macro risks such as inflation, publicdebt and confidence on economic recovery, the prospect of recovery is positive in the second half of2023, he said.
Leelahaphan said there are at least five challenges facing Vietnam related to economic growth, inflation, foreign reserves,monetary policy and real estate market.
Vietnam’s inflation rate is anticipated to rise from 3.15% last year to 4 - 4.5% in 2023, he said, adding that factors that may impact inflation this year include increasing tuition fees andimport inflation.
He, however, noted that Vietnam has experience in inflationcontrol and it will be the top priority in the country’s policymanagement.
According to the expert, Vietnam will continue to be an important link in theglobal supply chain and an attractive destination chosen by many businesses.
He said the most important thing now is to speed up the disbursement ofpublic investment to support the economy, adding that strengthening investment in infrastructuredevelopment is the key to supporting economic growth./.
