Vietnam’s economic prospects in the medium and long terms remain very positive, and the Asian Development Bank (ADB) notes that continued strong interest in Vietnam as an FDI destination is a long-term vote of confidence, ADB Country Director in Vietnam Andrew Jeffries has said.

Speaking at the recent Vietnam Economic Forum, he said that strong performance across sectors boosted Vietnam’s economy and it expanded 8.8 per cent in the first three quarters of 2022.

Vietnam’s exports grew 13 per cent year-on-year in the first eleven months. Disbursement of FDI is estimated at $7.7 billion; the highest for five years.

With such positive developments, the bank’s Vietnam growth forecast for 2022 has been adjusted up to 7.5 per cent.

However, he went on, headwinds are strengthening in the closing quarter of the year, including weakening global demand for Vietnam’s exports, monetary tightening, and irregularities in the corporate bond market.

Policy responses from Vietnam need to strike a dedicated balance between curbing inflation and maintaining economic growth and also ensuring the stability of the financial sector.

“We believe that with sound economic fundamentals and strong leadership, Vietnam will be able to brace for the headwinds in 2023,” Mr. Jeffries said.