Illustrative photo (Photo: VNA) Paris (VNA) – Vietnam's economy will grow by 6.6%this year and at a similar rate in 2024, according to a report released onMarch 31 by the Organisation for Economic Co-operation and Development (OECD).
The report “The Economic Outlook for Southeast Asia, Chinaand India 2023: Reviving tourism post-pandemic” states that Vietnam’s economicgrowth is driven by foreign investment in the manufacturing sector, especiallyelectronics, machine manufacturing, textiles and footwear, and benefits from China's loosening of COVID-19 prevention and control measures.
At this rate, the OECD believes that Vietnam continues tolead the top five largest economies in Southeast Asia. The Philippines isforecast to reach growth of 5.7% in 2023 and 6.1% in 2024, Indonesia at 4.7%and 5.1%, Malaysia at 4.0% and 4.2%, and Thailand at 3.8% and 3.9% in thesame period.
The report says that the end of support programmesafter the COVID-19 pandemic will create favourable conditions for Vietnam toimprove its public financial situation. However, weaker demand is likely toreduce investment in the Vietnamese economy. The report also recommends thecountry continue to closely monitor inflation trends.
As tourism was among the sectors most affected by both theCOVID-19 pandemic and responses to it, the report highlights the economicimpact of tourism in the region and explores how the sector can be reshaped toregain its significant role in Emerging Asia.
The interruption of tourism allowed countries in the regionto consider reforms in the sector, including diversifying tourism markets andaddressing labour market challenges, while catering to the new needs andpreferences of the post-pandemic world, prioritising sustainable andenvironmentally responsible activities, and accelerating digitalisation./.
