Most notably, the IMF has described the country as a bright spot in the global economy and continues to forecast Vietnamese GDP growth to grow 7% this year, higher than its previous projection of 6%. 

In line with this, Vietnamese GDP growth is the highest among the ASEAN-5 group that made up of Vietnam, Indonesia, Malaysia, the Philippines, and Thailand.

The ASEAN-5 group is therefore forecast to grow 5.3% this year, rising from 3.4% last year, but will slow down to 4.9% in 2023, according to details given by the report.

The IMF’s latest report outlines that Asia's real GDP growth is projected to reach 4% this year, in comparison to recorded 6.5% last year.

This represents the fourth time that the IMF has moved to lower its economic growth forecast for the region amid global instability as several major economies such as Europe, the United States, and China have experienced high inflation coupled with an economic growth slowdown.

According to details put forward by the IMF, the dynamic Asia region has been significantly affected by escalating commodity prices, lower demand from major economies, as well as the consequences of disruptions occurring in the global supply chain.

Emerging Asian economies are forecast to reach 4.4% this year, rising to 4.9% in 2023, representing a drop of 20 percentage points and 10 percentage points respectively compared to the IMF’s projection made in July. In 2023, Vietnamese GDP growth is also projected to slow to 6.2%.

Previously, international organisations also highlighted Vietnamese economic stability. For example, in the World Bank’s East Asia and Pacific Update in October, Vietnamese GDP growth is projected to stand at 7.2% compared to the projection released in June of 5.8%.

In the latest ASEAN+3 Regional Economic Outlook (AREO 2022) report, the ASEAN+3 Macroeconomic Research Office (AMRO) also outlined an optimistic prediction for the Vietnamese economy by raising the country’s GDP growth to 7% from 6.3% in July.

Source: VOV