Mr. Paulo Medas made the assessment at the Annual Meetings of the IMF and the World Bank Group (WB) held recently in the U.S.

He affirmed that the Southeast Asian nation reported a growth rate of 5.66 percent in Q1, 2024 in spite of rising geopolitical instability on the globe. Exports continue to see an upward trend, facilitating overall growth until the end of this year.

Nevertheless, the economy is coping with potential risks from low domestic demands especially personal consumption.

IMF forecast that Viet Nam’s economic growth would expand by nearly 6 percent this year thanks to the recovery of domestic demand and the Government's support fiscal policies.

The expert predicted that due to rising inflation rates from global upheavals, it is necessary for the country to raise interest rates in a bid to rein in price pressures. However, the fiscal policy must be taken in a cautious manner so that it would not cause negative impacts on growth.

In the context of shifting of supply chains to Asia, Viet Nam is one of the investment destinations for foreign investors.

Viet Nam should continue to improve its business environment, streamline administrative procedures, develop infrastructure, especially for green energy development, and promote innovation in order to maintain its attractiveness.