ADB Country Director for Vietnam Shantanu Chakraborty (Photo: Minh Duc/VNA)

“This is premised upon early signs of upticks in the services industry and in the construction industry. We are also seeing growth in the agricultural sector, given the robust stability that has been shown in agricultural prices”, he said.

Mr. Chakraborty noted that the monetary and fiscal policies adopted by the government up until now have helped keep inflation under control, adding that the ADB’s current projection for inflation in Vietnam is 3.8% for 2023, and 4% for 2024.

In its September report, the ADB forecasts that Vietnam’s economic recovery would pick up in the near term thanks to strong domestic consumption, moderate inflation, accelerated public investment, and improved trade activities.

Mr. Chakraborty also noted that there is significant fiscal headroom that the government can deploy as Vietnam’s debt-to-GDP is currently around 38%, which is still far-off from the government’s stipulated target of 60%.