Vietnam’s economy will grow by 6.6% this year and at a similar rate in 2024, according to a report released by the Organization for Economic Co-operation and Development (OECD).
The report states that Vietnam’s economic growth is driven by foreign investment in the manufacturing sector, especially electronics, machine manufacturing, textiles and footwear, and benefits from China’s loosening of Covid-19 prevention and control measures.
At this rate, the OECD believes that Vietnam continues to lead the top five largest economies in Southeast Asia.
The report says that the end of support programs after the Covid-19 pandemic will create favorable conditions for Vietnam to improve its public financial situation. However, weaker demand is likely to reduce investment in the Vietnamese economy. The report also recommends the country continue to closely monitor inflation trends.
As tourism was among the sectors most affected by both the Covid-19 pandemic and responses to it, the report highlights the economic impact of tourism in the region and explores how the sector can be reshaped to regain its significant role in Emerging Asia.
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