AMRO revises up Vietnam's 2023 GDP growth forecast to 4.7% from 4.4%

AMRO forecasts that Vietnam would see a 6-per cent economic growth next year. Inflation is comfortably within the government's target, estimated at 3.3 per cent in 2023 and 3.4 per cent in 2024.

The projection, however, is lower than those of other international organisations such as the Asian Development Bank (5.8 per cent), UOB (5.2 per cent) and Standard Chartered Bank (5.4 per cent).

Vietnam may face significant challenges to achieve its annual growth target of 6.5 per cent this year.

The ministry of planning and investment presented its latest growth projections for the fourth quarter (Q4) and the full year. The most optimistic scenario anticipates a 6 per cent economic growth for 2023, necessitating a 10.6 per cent increase in Q4.

The next scenario foresees a 5.5 per cent economic growth in 2023, with an 8.8 per cent increase required in Q4.

The least favourable scenario projects a 5 per cent growth, demanding a 7 per cent increase in Q4.

AMRO's chief economist Hoe Ee Khor said the Vietnamese government has taken several measures to offer relief to enterprises hit by the downturn by slashing interest rates, deferring tax payments and restructuring loans.

“It takes a bit longer to recover, but the export sector is very critical and it’s likely to turn around next year. When the demand picks up, enterprises will recover and the economy will grow,” Khor added.

Fibre2Fashion News Desk (DS)