Vietnam posts highest GDP growth in Southeast Asia in past decade: US website

Saturday, 28/10/2023 09:15
Vietnam’s gross domestic product (GDP) growth has been the highest in Southeast Asia over the last decade, according to US-based website
Goods are loaded and unloaded at Sai Gon Port. (Photo: VNA)

As its economy grew by 5.3% in the third quarter of this year, Vietnam’s growth engine is still in full swing, boosted by households deploying excess savings accumulated through the COVID-19 pandemic, the website said in an article posted on October 25.

The favourable geopolitical situation and sooner-than-expected rate cuts by the State Bank of Vietnam (SBV) are the factors that promote economic growth, helping Vietnam become the best-performing market in the region.

The article also pointed out that optimism in the first half of this year eased in September, as investors consider impact of weak demand in its major trading partners such as the US, the European Union and China. In addition, inflationary pressure from oil and rice prices – major components of Vietnam's consumer inflation gauge will inevitably delay rate-cut cycle for now.

However, according to the article, these commodity pressures are temporary and will not affect the SBV’s interest rate policy. It is expected that after a short period of monetary tightening, interest rates will be lowered, thereby boosting lending activities and helping real estate firms address inventories.

While weaker trade and transitory inflation pressures have triggered a de-rating in H2 2023, Vietnam's structural earnings growth isn't impaired and should continue to surprise to the upside in the coming years, it said.

Despite the fact that trade has declined somewhat and inflationary pressures have increased, income growth according to Vietnam's economic structure has not decreased and will continue to increase unexpectedly in the coming years.

According to the article, recent news flow shows that Vietnam is very close to emerging market reclassification – an event that will bring more benefits to the country./.

CPV (Source: VNA)