The ASEAN+3 Macroeconomic Research Office–or AMRO–has issued a press release outlining key challenges for the Vietnamese economy found in its annual consultation visit to Vietnam last month. Specifically it lists:
- Risks to growth are tilted towards the downside due to weaker-than-expected consumer demand in the U.S., a sharp growth slowdown in Europe, and slower growth in China.
- Vietnam’s export recovery is at risk due to potential changes in U.S. trade policy following the U.S. Presidential election.
- The financial sector faces rising credit risks from an uneven economic recovery and typhoon damages, with a loan moratorium program masking weak credit quality.
- Some developers struggle with debt repayment and refinancing due to delays in new real estate laws.
- Long-term challenges include inadequate infrastructure, insufficient skilled labour, and under-developed domestic supporting industries and MSMEs.
- Emerging risks include cyber threats, extreme weather, and a rapidly ageing population, impacting macro-financial stability.