Public investment, domestic consumption, and export recovery will be the three main growth drivers of Vietnam's economy in 2024, the Asian Development Bank (ADB)’s Country Director for Vietnam Shantanu Chakraborty has told the Vietnam News Agency.

ADB recently lowers its growth forecast for Vietnam this year to 5.2% from the previous 5.8% forecast (Photo: VNA)

The official said that the ADB maintains its GDP growth rate for next year at 6%, with an expectation that there will be a certain recovery in the external environment, and domestic growth drivers will regain momentum from 2023.

An important foundation to maintain growth momentum in the coming time will be macroeconomic stability thanks to Vietnam's continuation of prudent fiscal policies, and proactive and flexible monetary policies applied since 2023, he stated, stressing the need to ensure that they are effectively carried out to create stronger momentum for the economy.

To achieve the 6% growth in 2024, the ADB Country Director advised Vietnam to speed up public investment in infrastructure, as it will help stimulate economic activities, support industrial, construction and mining businesses, and provide more employment opportunities.

Domestic consumption can be boosted by fiscal measures that encourage demand, and also supported by appropriate monetary policies that keep interest rates at relatively low levels.

To cope with headwinds, Vietnam's policies need to be more proactive to support enterprises in expanding their markets, and promoting the exploitation of signed free trade agreements.

In the long term, Vietnam needs to promote public investment in green energy transition, upgrade infrastructure to improve the competitiveness of the economy, and strengthen the foundation to increase resilience and boost sustainable development, Shantanu Chakraborty said.

Assessing the country’s economic situation this year, he said that its economy is showing a strong recovery despite the global economy’s instability and increasing geopolitical tensions.

The Vietnamese Government has taken right steps to solve problems posed by global challenges. To date, the Government has achieved a balance between monetary and fiscal policies to ensure high resilience to the global challenges facing the economy.

The bank recently lowered its growth forecast for Vietnam this year to 5.2% from the previous 5.8% forecast. However, according to him, Vietnam's growth rate is quite good compared to many countries in the region.