Vietnam’s economic growth faced some challenges this year, struggling with reduced global demand and a drop in public investment amidst an anti-corruption campaign, as per official data.
The Gross Domestic Product (GDP) for the year marked a growth of 5.05 per cent, notably lower than the previous year’s 8.02 per cent, failing the Government’s 6.5 per cent target and lower than usual growth of 5.87 per cent, reports the General Statistics Office (GSO).
The GSO reported that exports, which were the primary source of foreign exchange earnings in 2023, dropped 8.3 per cent to US $ 355.5 billion, a 4.4 per cent decrease from the previous year.
As a crucial regional manufacturing center greatly dependent on trade, Vietnam experienced a 4.4 per cent fall in exports, totaling US $ 355.5 billion. Industrial production managed a modest 1.5 per cent increase, and consumer prices rose by 3.25 per cent, while trade sales surged by 9.6 per cent.
Despite falling short of the growth target, the GSO sees the 5.05 per cent expansion as a positive development, making Vietnam among the fastest-growing economies globally. Moreover, the nation achieved a trade surplus of US $ 28 billion in 2023, with an 8.9 per cent decline in imports to US $ 327.5 billion.
The central bank’s efforts to encourage growth through four rate cuts haven’t resulted in the desired credit growth of 14 per cent, with the economy facing challenges in a slow recovery. To make up for declines in exports, Vietnam is extending a value-added tax cut to support domestic consumption, with boosting public investment, primarily in infrastructure.
