The World Bank (WB) has announced its updated forecast of Vietnam’s GDP growth of about 6% in 2023, down about 0.3% compared to the prediction that the lender made in January. However, the growth rate is still the highest in the Southeast Asian region despite the gloomy global economic situation.
The global trade of goods is recording extremely dismal growth in 2023. This situation is likely to affect the performance of some economies having trade as the main growth engine, especially Malaysia and Vietnam, where growth is forecast to be moderate, according to a WB report.
In fact, the growth rate of 6.5% for the whole year as set by the Government is considered the most optimistic scenario. Although the country’s GDP increased only 3.32% in the first quarter of this year, many reputable organisations in the world still believed that the country can achieve this goal.
The Organisation for Economic Cooperation and Development (OECD), Standard Chartered Bank and ADB forecast that Vietnam's GDP in 2023 will expand by 6.5%.
However, experts held that the Vietnamese economy will face many risks, including those from the slow recovery of major trade partners, high global inflation, the tightening of monetary policies in many countries, disruption of the global supply chain, energy and food security, disasters and climate change.
Meanwhile, a survey announced by McKinsey & Company showed that around 70% of millennials (persons born between 1981 and 1996) are optimistic about the country’s economic outlook, the highest level among Asian countries.
According to WGSN, a global trend forecasting company, Vietnam will soon become the fastest growing digital economy in Southeast Asia and one of the fastest growing economies in Asia this year.
Alongside, improvements in logistics infrastructure are expected to contribute to boosting Vietnam's e-commerce industry, which is estimated to reach 49 billion USD by 2025.
Vietnamese consumers are increasingly confident in domestic brands and products with 76% preferring domestic and "Made in Vietnam" brands to foreign brands, said Helen Sac, WGSN's Consultant Director for Asia Pacific./.
Source: VNA