Vietnam's economy recovers and grows better in the second half of the year

In a recent macroeconomic report on Vietnam, Standard Chartered Bank (UK) said that continuously improved monthly trade data since the beginning of 2023 shows a clearer recovery for Vietnam in the second half of the year.

Để Việt Nam trở thành nước phát triển, thu nhập trung bình cao. (Nguồn: Vnxpress)

Vietnam's economy will recover and grow at 7% in the second half of the year. (Source: Vnxpress)

Mr. Tim Leelahaphan, economist in charge of Thailand and Vietnam of Standard Chartered, commented that Vietnam's economic outlook in the medium term remains very positive as the economy continues to maintain stability and implement an open-door policy.

The expert also assessed that the continuous recovery of tourist arrivals will support the service balance.

The Bank of England said that although macroeconomic indicators have improved, they remain relatively weak. Continued declines in trade activity have led to a slowdown in manufacturing and economic activity.

Trade surplus increased in Q2/2023, but exports decreased compared to the same period last year.

For these reasons, Standard Chartered has lowered its forecast for Vietnam's 2023 GDP growth to 5.4% from 6.5% previously. However, the economy will recover and grow at 7% in the second half of the year - better than the first half of this year.

The bank also became more cautious amid weaker-than-expected economic data so far this year and a bleaker global economic outlook.

Standard Chartered wrote: "This year's inflation forecast has also been revised down to 2.8%, compared to the previous 4.3%. Government efforts and improvements in the global economic landscape will be factors to boost investment flows.

To restore foreign direct investment (FDI) flows, Vietnam needs to continue rapid GDP growth and infrastructure development. Strong infrastructure, especially in the logistics sector, can encourage more manufacturers to move to Vietnam."

Source