The main driver of this increase will be foreign investment in the manufacturing sector, especially electronics, machinery, textiles and footwear, according to a report released in Hanoi by the Organization for Economic Cooperation and Development (OECD).
Another factor that will have a positive impact on Vietnam’s improved economic performance will be China’s relaxation of measures to prevent and contain the Covid-19 pandemic, it adds.
The OECD report considers that ending post-pandemic support programs will create conditions for the Indochinese nation to improve its public financial situation, but warns that weaker demand may dampen investment.
It also recommends continuing to closely monitor inflation trends, and insists that Vietnam will continue to lead the five largest economies in Southeast Asia, with growth estimated at 6.6% this year and next.
Meanwhile, the Economic Survey and Global Markets Unit of UOB Bank (United Overseas Bank Limited) forecast that Vietnamese gross domestic product will increase by 6% in 2023.
Adjusting its initial forecast (6.6%), the specialized agency considered that in the first quarter of the current fiscal year the national GDP will reach a year-on-year increase of only 3.32%, while it will show a reduction of 5.92% compared to the fourth quarter of last year.
As for the second quarter, it predicted a 5.9% GDP growth compared to the same period of 2022, thanks to the recovery of global demand.
Source: Plenglish
