Vietnam PM says 2023 economic growth seen below expectation

VIETNAM expects gross domestic product growth of more than 5 per cent this year, missing an earlier government target, the country’s prime minister told a parliament meeting on Monday (Oct 23).

The country’s inflation is expected to be 3.5 per cent to 4 per cent for the year, Pham Minh Chinh said.

Vietnam had set a GDP growth target of 6.5 per cent for this year, down from 8.02 per cent last year. Weak global demand, however, has weighed on the country’s exports.

Chinh said Vietnam has an open economy that is prone to external shocks, adding that high inflation, weak demand and political uncertainties in the world have hurt the country’s exports, which fell 8.5 per cent in the first nine months of this year.

“Manufacturing is witnessing a slow recovery, with businesses experiencing fewer orders,” he said. “Exports to strategic markets fell year on year.”

He also said non-performing loans in the banking system are on the rise.

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“For the rest of this year, Vietnam will continue to prioritise growth,” Chinh said, noting that the central bank has this year cut its policy rates four times.

GDP in the July-September quarter grew 5.33 per cent from a year earlier, faster than an expansion of 4.05 per cent in the second quarter, but much slower than the low-base growth of 13.71 per cent in the same period of 2022. REUTERS