Singaporean newspaper: Vietnam’s economy poised for gradual recovery

Singapore’s newspaper published an article on the recovery of the Vietnamese economy, citing the latest World Bank Taking Stock bi-annual economic update with growth forecast to reach 5.5 percent in 2024 which will rise to 6 percent by 2025.

Harvesting coffee in Buon Ma Thuot city, Dak Lak province (Photo: VNA)

The article published on Singapore’s said after experiencing a slowdown in 2023, the economy is showing mixed signs of recovery in early 2024. While exports are recovering, consumption and private domestic investment are growing more gradually. Real exports are expected to grow by 3.5 percent in 2024, reflecting a gradual improvement in global demand.

In addition, a turnaround in the real estate sector is anticipated later this year and next, bolstering domestic demand as investors and consumers regain confidence. Real total investment and private consumption are projected to increase by 5.5 percent and 5 percent in 2024, respectively.

It quoted the WB East Asia and Pacific Practice Manager for Macroeconomics, Trade and Investment Sebastian Eckardt as saying that investing in public infrastructure projects goes beyond immediate economic stimulus. Efforts to enhance public investment management will also address critical infrastructure gaps in energy, transportation, and logistics, which are fundamental for Vietnam’s long-term economic growth.

According to the article, the WB recommended expediting infrastructure investment projects financed by public resources. This would help further stimulate the economy, with an additional potential 0.1 percentage point of GDP growth for every 1 percentage point increase in public investment as a share of GDP.

The report’s special section offers recommendations for supporting innovative startups to contribute to Vietnam’s productivity growth, it said.

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