Vietnam's economic growth to stand at 6.5% in 2023, 6.8% in 2024: ADB

The global economic slowdown deepened in the fourth quarter of 2022 and will likely continue in 2023. Falling global demand is expected to weigh on industrial growth, according to the Asian Development Outlook (ADO) April 2023.

Public investment will be another key driver for economic recovery and growth in 2023 and 2024, spurring economic activities. Along with the move to monetary easing in March 2023, public spending is expected to generate substantial multiplier effects, creating strong growth stimulus for the economy.

The prolonged pandemic exposed structural issues that are among the main downside risks to the economy. Domestic capital markets come under pressure. Although the market turbulence has not yet caused serious systemic risks due to banks’ resilience, risks are becoming evident. In the long term, financial sector reforms should be sustained to reduce the dependence of the economy on bank finance and enhance transparency in capital markets.

“Vietnam’s economic growth will be constrained in 2023 by the global economic slowdown, continued monetary tightening in advanced economies, and spill-over from global geopolitical tensions,” said ADB country director for Vietnam Andrew Jeffries. “However, Vietnam’s growth support policy with monetary easing, a large amount of public investment to be disbursed in 2023, and the reopening of China will help the country counter these headwinds.”

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