DOING BUSINESS IN VIETNAM 2023

Vietnam's GDP will reach $409 billion in 2022, placing it fifth in Southeast Asia and 37th globally. Vietnam's GDP is expected to rise by 5.8 percent in 2023, cementing its position as Southeast Asia's second fastest-growing economy. GDP is estimated to be around $450 billion by the end of 2023.

In 2022, FDI inflows reached over 27.72 billion USD, with a record-high distribution of more than 22.4 billion USD. FDI attraction is expected to increase by 37% in 2023 compared to 2022, reaching US$36-38 billion. In 2022, core inflation remained under control at 2.59 percent, with an average CPI increase of 3.15 percent. Vietnam's annual inflation rate fell significantly in April 2023, reaching a 12-month low of 2.81 percent. The administration intends to keep inflation in the 3-4.5 percent range for the full year.

A volatile global economy shaped the socio-economic landscape in the first quarter of 2023. While worldwide inflation has slowed, it still affects Vietnam's trading partners' consumption, which hurts the local economy.

While central banks maintain strict monetary policies, the early insolvency of some US and European banks in 2023 has undermined public trust in the banking sector. Additionally, continuous conflicts like the Ukraine crisis, supply chain interruptions, and rising raw material prices are putting pressure on Vietnam's economic growth.