ADB: Vietnam's economy continues to recover steadily

The Asian Development Bank (ADB) believes that in the future, Vietnam's economic recovery will continue with growth forecast to remain at 6.0% for 2024 and 6.2% for 2025.

Vietnam's economy continues to recover steadily thanks to the strong recovery of both imports and exports and domestic demand. (Illustration photo: THANH DAT)

On July 17, ADB released the latest edition of the Asian Development Outlook (ADO) report. Accordingly, this financial institution forecasts growth Vietnam's 2024 and 2025 forecasts remain unchanged from the ADO edition published in April.

According to ADB, Vietnam's economy continues to recover stable with growth of 6.4% in the first half of 2024.

Therefore, Vietnam's growth outlook for 2024 and 2025 remains unchanged at 6.0% and 6.2%, respectively, with positive growth in the first half of this year.

ADB Growth was supported by a strong recovery in both imports and exports and domestic demand as monetary policy remained supportive.

Growth was supported by fiscal measures such as a further 2% reduction in value-added tax and efforts to better implement public investment.

Strong external demand for electronics exports has boosted industrial production, but the gloomy outlook for the global economy could have some impact.

As a result, the trade-related manufacturing sector - one of the main recovery drivers - is expected to slow down in the coming period, while domestic demand remains weak.

Therefore, ADB forecasts that in the future, the recovery of Vietnam's economy will continue with growth forecast to remain at 6.0% for 2024 and 6.2% for 2025. Inflation is forecast to stabilize at 4.0% in 2024 and 2025.

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