ADB: Vietnam's GDP growth to rank 2nd in the ASEAN region in 2024

Lowered general economic growth

The Asian Development Bank (ADB) has just released the Asian Development Outlook December 2023, in which the bank forecasts the general growth of Southeast Asian countries in 2023 will be at 4.3%, instead of 4.6% as previously forecast. ADB explained that these adjustments are due to slowing production and business activities in major economies such as Malaysia, Thailand and Vietnam.

Along with that, ADB also reduced ASEAN's growth forecast for 2024 to only 4.7% instead of 4.8% in the previous forecast. According to this financial institution, in 2024 the Philippines will have the highest growth rate in the ASEAN region with 6.2%, followed by Vietnam at 6%. The economy with the largest GDP in the ASEAN region, Indonesia, is forecast to grow at 5%, while the economic growth rate of Singapore is expected to be the lowest with 2.5%.

According to ADB, the factors to promote growth of countries in the ASEAN region are public investment and consumer spending, especially spending by international visitors. Besides, the recovery in electronics and technology exports will further improve the growth prospects of countries in the region.

At the 6th session of the 15th National Assembly taking place in October 2023, Vietnam set a GDP growth target of about 6-6.5% in 2024. At the same time, GDP per capita was projected to reach about 4,700-4,730 USD while the proportion of processing and manufacturing industry in GDP is expected to be about 24.1-24.2%. The average growth rate of the consumer price index (CPI) is about 4-4.5%, and the average growth rate of social labor productivity is 4.8-5.3%.

Source: ADB

Compiled by VBI