Vietnam's economy slowed to 5% in 2023

Posted on January 2, 2024   |  

Vietnam's economy grew at a slower pace of 5.05% in 2023 compared to the previous year's expansion of 8.02%, influenced by global demand weakness and a pause in public investment due to an intensified anti-corruption campaign.

The GDP growth falls short of the government's 6.5% target and is below the decade-average of 5.87%.

Vietnam experienced a 4.4% decline in exports in 2023, with smartphone shipments, a significant foreign currency earner, dropping by 8.3%.

The industrial production index grew by 1.5%, and average consumer prices rose by 3.25%, as reported by the General Statistics Office (GSO). 

Retail sales, however, showed a positive growth of 9.6%.

Despite the central bank's four policy rate cuts aimed at boosting economic growth, credit growth remained below the target of 14%, indicating weaker-than-expected results.

Vietnam implemented measures like extending a value-added tax cut to stimulate domestic consumption and accelerated public investment, particularly in infrastructure. 

However, public fund disbursement only reached 65% of the annual target by the end of November.