The ASEAN Macroeconomic Research Office has released its Annual Consultation Report Vietnam – 2023 which forecasts a GDP growth rate of 6 percent this year.
Other key takeaways from the report include:
- The expansion is predicted to be off the back of increased exports and increased foreign direct investment;
- Risks for the economy are mostly external–the performance of the economies of Europe the USA, and China;
- There is a skilled labour shortage and
- Vietnam’s estimated foreign reserves at the end of 2023 were US$89.7 billion.
The report argues for:
- Stronger liquidity buffers for banks;
- Lower loan concentration limits and debt-to-value ratios;
- Credit growth targets should be phase out;
- Greater consolidation in the banking industry; and
- Information disclosures and investor protections in the bond market should be improved.