International Organizations Predict Vietnam's GDP Growth to Range Between 5.8% and 6.9% in 2023-24
According to various international organizations, Vietnam’s economy may experience growth ranging from 5.8 percent in 2023 to 6.9 percent in 2024, but there are still many challenges to overcome. These predictions were discussed at the Government’s May monthly meeting, which reviewed the country’s socio-economic development in the past five months and set out tasks for the remaining months of the year.
The Ministry of Planning and Investment reported that international organizations continue to view Vietnam’s economic growth prospects positively. The International Monetary Foundation (IMF), the Organization for Economic Cooperation and Development (OECD), the Asian Development Bank (ADB), and the World Bank (WB) have all projected varying GDP growth rates for Vietnam. Despite positive projections, the national economy still faces many risks and fluctuations, including slow recovery of major trading partners, pressure of global inflation, tightening monetary policies in many countries, disruption in global value chains, and energy, food, and climate-related challenges.
The Ministry has proposed that the government adopt solutions to support enterprises and people to overcome these challenges. The country’s macroeconomic conditions remained stable, and inflation was under control in the past five months, thanks to the government’s timely policies and directions. The PM directed relevant ministries and localities to remove obstacles to enterprises’ operations, support exporters in expanding new markets, improve administrative procedures, and promote science, technology, and digital transformation in economic activities.
The PM also requested the development of a resolution to improve the trade and investment environment, amend mechanisms and policies to attract foreign direct investment, and assist businesses facing difficulties. The government has recently sent working groups to all 63 provinces and cities of the country, where they received recommendations and resolved issues on the spot.
The PM requested all relevant ministries to support exporters, expand export markets, and make the best use of the domestic market. The Ministry of Finance was required to implement tax exemption, reduction, and extension policies, extend deadlines for excise tax payment, and speed up VAT refunds. The State Bank of Vietnam was asked to reduce lending interest rates, restructure loan repayment terms, keep the foreign currency market stable, and manage exchange rates effectively.