Vietnam's GDP forecast to grow 5% in 2023: Standard Chartered Bank

10 Jul '23

2 min read

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Vietnam's 2023 GDP growth forecast has been revised from 5.2 per cent to 5 per cent, according to a recent report by Standard Chartered Bank.
Despite this, the bank anticipates a 7 per cent growth in the second half of 2023 due to strong trade data and a potential recovery in tourism.
The country's GDP expanded 3.72 per cent in the first half of 2023.

Vietnam’s GDP growth forecast for 2023 has been revised to 5 per cent from 5.2 per cent, according to the latest report by Standard Chartered Bank. Despite the slight downgrade, the bank remains optimistic about the Vietnamese economy's resilience, expecting it to grow 7 per cent in the latter half of this year, up from 3.7 per cent in the first half.

The bank's report highlights the sustained enhancements in trade data from the beginning of 2023, suggesting a more robust economic rebound in the latter part of the year. The country's economic stability and openness are key drivers for its promising mid-term outlook, said Vietnamese media reports quoting the Standard Chartered Bank.

Maintaining investment inflows might need an enhanced global environment and concerted efforts from the Vietnamese government.

For Vietnam to draw more foreign direct investment, it must not only strive for swift GDP growth but also invest in infrastructure development. A robust infrastructure, especially in the logistics sector, could encourage more manufacturers to shift their operations to the country, the media reports added.

Earlier data from the General Statistics Office (GSO) showed that Vietnam's GDP growth quickened to 4.14 per cent in the April-June period, up from 3.32 per cent in the previous quarter. The country's GDP expanded 3.72 per cent in the first half of 2023.

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