Vietnam's economy resilient, recovery may pick up in near term: ADB

He said this while releasing the Asian Development Outlook (ADO) for September this year in Hanoi recently.

Vietnam’s economic growth is expected to slow down to 5.8 per cent this year and 6 per cent next year compared to the April 2023 forecast of 6.5 per cent and 6.8 per cent respectively, primarily because of weak external demand, the ADB report said.

Inflation forecasts have been revised down to 3.8 per cent from 4.5 per cent for 2023 and 4 per cent from 4.2 per cent for 2024.

Global economic slowdown, monetary tightening in some advanced countries and the disruption caused by exacerbated geopolitical tensions are the main factors that have affected the economy, it noted.

The weak external environment, including a subdued recovery in China, has hit export-led manufacturing, thus shrinking industrial production in Vietnam, Chakraborty said.

While the country’s industrial production is shrinking due to falling global demand, other sectors are forecast to display healthy growth.

Internally, slow disbursements of public investment and structural weaknesses in the real economy are the main downside risks to the economy. Externally, a substantial slowdown in global growth and weak recovery in China remain risks to the economic outlook, the ADB report added.

Fibre2Fashion News Desk (DS)