Viet Nam’s economy projected to grow 6.1% in 2024: IMF

The Executive Board of the IMF concluded on August 30 the 2024 Article IV Consultation1 with Viet Nam. In the challenging year of 2023, the Vietnamese economy grew by 5 percent thanks to determined actions by the central government.

This year, domestic demand growth is expected to recover gradually as corporates navigate through high debt levels while the real estate sector will only fully recover over the medium term. Inflation is expected to hover around the State Bank of Viet Nam's target of 4-4.5 percent this year.

According to the IMF, downside risks are high. Exports, a key driver for Viet Nam's economy, could weaken if global growth disappoints, global geopolitical tensions persist, or trade disputes intensify.

Executive Directors commended the authorities' swift actions to maintain macro-financial stability as the economic recovery from the pandemic faced domestic and external headwinds.

Directors welcomed the authorities' plans to speed up the implementation of public investment, which will require tackling bottlenecks, and stressed the importance of expanding social safety nets to support the most vulnerable.

They recommended strengthening the fiscal framework and budget process and increasing revenue mobilization over the medium term to support the ambitious development agenda.

Directors commended the authorities for effectively containing inflation risks but stressed that monetary policy should continue to be cautious under a complex environment and limited policy space.

They emphasized the importance of moving ahead with implementation of the strategy and developing the appropriate regulatory framework to promote investment in renewable energy and secure funding for the green transition./.