Vietnam's economy to grow by 6.6% this year: OECD
Paris (VNA) – Vietnam's economy will grow by 6.6% this year and at a similar rate in 2024, according to a report released on March 31 by the Organisation for Economic Co-operation and Development (OECD).
The report “The Economic Outlook for Southeast Asia, China and India 2023: Reviving tourism post-pandemic” states that Vietnam’s economic growth is driven by foreign investment in the manufacturing sector, especially electronics, 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 to
lead the top five largest economies in Southeast Asia. The Philippines is
forecast 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 the
same period.
The report says that the end of support programmes
after the COVID-19 pandemic will create favourable conditions for Vietnam to
improve its public financial situation. However, weaker demand is likely to
reduce investment in the Vietnamese economy. The report also recommends the
country continue to closely monitor inflation trends.
As tourism was among the sectors most affected by both the COVID-19 pandemic and responses to it, the report highlights the economic impact of tourism in the region and explores how the sector can be reshaped to regain its significant role in Emerging Asia.
The interruption of tourism allowed countries in the region to consider reforms in the sector, including diversifying tourism markets and addressing labour market challenges, while catering to the new needs and preferences of the post-pandemic world, prioritising sustainable and environmentally responsible activities, and accelerating digitalisation./.