The Asian Development Bank lowered its forecast for Vietnam for 2023 to 5.8 percent from 6 percent which it forecast earlier in the year in its Asian Development Outlook September 2023, The Investor is reporting.
Key reasons for the downgrade listed in the report include
- Vietnam’s manufacturing output shrinking by 0.4 percent as a result of declining external demand;
- Regulatory constraints delaying public disbursements;
- Weak credit growth; and
- A shrinking corporate bond market.
It also notes:
- Inflationary pressures in Vietnam have eased due to lower oil prices;
- That domestic tourism has benefited from efforts to keep the currency stable and economic stimulus programs;
- The service sector is expected to continue to expand; and
- That public investment will be the key driver of growth.