Standard Chartered Bank has forecast that Vietnam will post GDP growth of 7.2 per cent in 2023 and 6.7 per cent in 2024, following the country’s recovery in 2022 and 8.02 per cent growth.

In its “Vietnam - Still enjoying high-growth status” report, Mr. Tim Leelahaphan, Economist for Thailand and Vietnam at the bank, said it still believes in Vietnam’s high growth potential over the medium term.

Retail sales posted solid growth in the second half of last year, implying improved domestic activity, he said.

Vietnam’s trade balance has tentatively improved but exports may face global headwinds and imports are at risk of reversal.

FDI disbursements have continued to increase, but the outlook hinges on the global economy. Inflation may pose a threat to Vietnam’s continued recovery, the bank wrote in the report.

Vietnam’s inflation rate is anticipated to rise throughout 2023, potentially reaching 6 per cent in the closing months of the year and averaging 5.5 per cent in both 2023 and 2024, from 3.2 per cent in 2022. Its fiscal deficit may persist and be a source of inflation, it said.