11-4-2024 (HANOI) In a resounding vote of confidence for Vietnam’s economic resilience, the Asian Development Bank (ADB) has maintained its previous growth projections for the nation. According to the bank’s recently released Asian Development Outlook, Vietnam’s GDP is expected to expand by an impressive 6.0 percent in 2023, followed by a steadfast pace of 6.2 percent in both 2024 and 2025.
The ADB’s optimistic forecast hinges on a multifaceted recovery, underpinned by a revival in export-driven manufacturing and services, coupled with the agriculture sector’s stable performance. This broad-based resurgence is poised to propel Vietnam’s economic momentum forward, signaling the nation’s ability to navigate the turbulent global landscape.
Shantanu Chakraborty, the ADB’s Country Director for Vietnam, underscored the country’s robust growth prospects, stating, “Vietnam’s economy is expected to grow at a solid pace this year and the next, despite a challenging global environment.” However, he cautioned that global geopolitical uncertainties and domestic structural vulnerabilities could potentially impact the outlook, necessitating a judicious policy approach.
Chakraborty emphasized the need for a balanced strategy in 2024, advocating for a combination of short-term measures to bolster domestic demand and long-term structural reforms to promote sustainable growth. This dual-pronged approach aims to fortify Vietnam’s economic foundations while ensuring its resilience in the face of global headwinds.
The report highlighted several key factors underpinning Vietnam’s growth trajectory. Positive inflows of foreign direct investment and remittances, coupled with a sustained trade surplus, are expected to provide a significant boost. Furthermore, the recovery in domestic consumption and the government’s continued fiscal stimulus, characterized by a substantial public investment program, are anticipated to act as catalysts for economic expansion in 2024.
Notably, the ADB underscored the pivotal role of public investment as a driving force behind Vietnam’s economic growth.
