Hanoi (VNA) – 2023 continues to be a tough year for the world economy as COVID-19 pandemic has still taken heavy tolls while a series of new challenges have emerged, including geopolitical conflicts, tight monetary policies in major economies and world economic slowdown.
However, ADB believed that Vietnam’s growth rate is quite good compared to many countries in the region. The bank said that a weaker-than-expected recovery in external demand continues to hamper industrial and services growth, slowing Vietnam’s recovery in employment and domestic consumption but prudent and proactive monetary policy will help control inflation. The inflation in Vietnam is forecast at 3.8% in 2023 and 4% in 2024.
In an article published in November 2023, Bloomberg Economics placed Vietnam among the five economic “connectors” in a fragmented world, along with Poland, Mexico, Morocco, and Indonesia. All five countries are reaping benefits from the reshuffling of origin chains in reaction to escalating geopolitical tensions. They are strategically placed to take advantage of conversion dynamics within global supply chains.
According to Bloomberg economists, those five countries account for 4% of global gross domestic product (GDP) but have attracted more than 10% of foreign direct investment, or $550 billion, from all new investment projects since 2017. Earlier, Bloomberg also said that the immediate economic expansion has turned Vietnam into a land for startups.
With an average real GDP expansion rate of 6. 1% over the past decade, Vietnam belongs to the group of countries with the highest rates of economic expansion.