Viet Nam’s 8 per cent growth in 2022 was a bright spot in the region and the world, said Daniel Leigh, head of the World Economic Studies division in the International Monetary Fund (IMF)'s Research Department, which produces the World Economic Outlook (WEO).

In an interview granted to the Vietnam News Agency during the week of Spring Meetings of the IMF and the WB in Washington DC, Leigh said the IMF has just revised up the growth forecast for Viet Nam, adding that this is partly due to the rebound from COVID-19 and trade diversion. Some of the investment is shifting to Viet Nam, giving the country a lift, said the expert.

Although the IMF expected a slowdown in Viet Nam’s growth, the projected rate is still high, at 5.8 per cent in 2023 and 6.9 per cent in 2024, he said.

He also noted that inflation in Viet Nam is relatively low, at over 3 per cent in 2022. It is coming up – partly because of the dynamic economy – and is expected to be back to the world inflation target, at around 4.3 per cent in 2024.

For Viet Nam to continue to grow strongly in the remaining quarters of this year and the next five years, Leigh recommended that the country's monetary policy continue to focus on bringing down inflation as it happens, and fiscal policy continues giving targeted support to the vulnerable households.

Regarding financial stability, priority should be given to helping stabilise the real estate and corporate bond markets with specific tools, but this should not distract from the overall move toward inflation stability, he suggested. — VNS