Ha Noi, April 23, 2024—Viet Nam's economy is showing signs of recovery, with growth expected to reach 5.5% in 2024 and gradually rise to 6.0% by 2025, as stated in the latest World Bank Taking Stock bi-annual economic update released today.
The report highlights that while exports are recovering, consumption and private domestic investment are growing more gradually. Real exports are expected to increase by 3.5% in 2024, reflecting an improvement in global demand. Furthermore, a turnaround in the real estate sector is anticipated, which will boost domestic demand as confidence among investors and consumers is regained.
The World Bank report emphasizes the importance of sustained fiscal policy support to strengthen the recovery, recommending the acceleration of infrastructure investment projects financed by public resources. Sebastian Eckardt from the World Bank stressed, "Investing in public infrastructure projects goes beyond immediate economic stimulus."
The report also addresses the fiscal deficit, projecting it to widen to 1.6% of GDP in 2024 before narrowing to 1.1% in 2025, aligning with the country’s Fiscal Strategy for 2021-2030. It underscores the need to ensure the stability of the financial sector, especially in managing risks associated with increasing bad debts, particularly in the real estate market.
Additionally, the report's special section offers recommendations for supporting innovative startups in Viet Nam to enhance productivity growth. It suggests revamping key ecosystem support programs, streamlining regulations, and empowering academia and public research institutions to contribute to startups effectively.
The World Bank's Taking Stock report serves as a comprehensive economic overview of Viet Nam, offering insights and recommendations for sustainable economic growth and development.