Vietnamese economy likely to boom in second quarter

In a recent interview granted to Lao Dong (Labour) Newspaper, Leelahaphan said the nation endured a challenging 2022, particularly as foreign exchange reserves saw a remarkable decrease, along with difficulties related to real estate and bond markets, as well as liquidity issues.

However, the economic situation gradually improved in the first quarter of the year, he said, pointing to the recovery of the VND and citing Standard Chartered's forecast that the country's GDP growth could hit 7.2% this year and 6.7% ahead in 2024.

Despite the Vietnamese economy still facing a number of macro risks such as inflation, public debt, and confidence on economic recovery, the prospect of recovery moving forward is positive for the second half of the year, he said.

Leelahaphan stated there are at least five challenges facing the nation which relate to economic growth, inflation, foreign reserves, monetary policy, and the real estate market. 

The Vietnamese inflation rate is anticipated to rise from 3.15% last year to 4% to 4.5% this year, he said, adding that factors that may impact inflation this year such as increasing tuition fees and import inflation.

However, he noted that the country has experience in inflation control and it will be the top priority in terms of policy management.

According to the expert, Vietnam will continue to be an important link in the global supply chain, as well as being an attractive destination chosen by many businesses.

He said the most important thing now is to speed up the disbursement of public investment in support of the economy, adding that strengthening investment in infrastructure development represents the key to supporting economic growth.