The Vietnamese economy is projected to grow by 5.5% this year, according to the World Bank in its East Asia and Pacific Economic Update released on April 1, 2024. (Photo: World Bank)

The projection remains unchanged compared to the bank’s forecast of 5.5% in 2024 and 6% unveiled earlier this year.

World Bank East Asia and Pacific Chief Economist Aaditya Mattoo attributed Vietnam’s 5% growth projection to global trade resilience as well as the country’s post-pandemic recovery resilience.

In addition, no urgent reforms have been undertaken in real estate as seen in services, investment improvement, and investment disbursement, along with cooperation among localities.

However, he stated Vietnam is a country with great potential, and it should not be satisfied with the 5% projection while in fact it is likely to grow by 8%.

According to the report titled Firm Foundation of Growth, the East Asia and Pacific region is growing faster than the rest of the world, but slower than before the pandemic. While recovering global trade and easing financial conditions will support regional economies, increased protectionism and policy uncertainty will dampen growth.

The region is projected to expand by 4.6% this year, up from 4.4% last year. Growth in China is projected to moderate to 4.5% from 5.2% last year, as high debt, a weak property sector, and trade frictions weigh on the economy.

“The East Asia and Pacific region is making a strong contribution to world economic growth, even as it faces a more challenging and uncertain global environment, aging population and the impacts of climate change,” said World Bank East Asia and Pacific Vice-President Manuela V. Ferro. “Countries of the region can sustain their growth momentum by accelerating the opening of more activities to private sector investment, resolving financial sector challenges, and boosting productivity.”

The outlook is subject to downside risks, which include a greater than expected slowdown in the global economy, higher for longer interest rates in major economies, increased uncertainty around the world about economic policies, and an intensification of geopolitical tensions.

VOV