Key View

• We expect that Vietnam’s economy will remain very weak over the coming quarters and forecast growth of 4.7% in 2023 and 5.5% in 2024.
• The export-oriented industrial sector still faces plenty of headwinds and, while we previously thought that Mainland China's recovery would provide some reprieve, this has hardly been the case.
• Domest

Key View

• The June 2023 acquisition of Nova FnB, a multi-brand restaurant operator, in Vietnam by a Singapore-based firm signals the growing relevance of the restaurant and hotel sector in the market.
• Over the medium term (2023-2027), restaurant and hotel spending will record the highest growth out of all spending categories (essential and non

Key View

• On May 16 2023, Vietnam approved its Eighth Power Development Plan (PDP8), providing the power market with clarity on the government's position on its power mix development.
• We believe the capacity targets in the PDP8 are ambitious at the moment given current power market developments. However, this provides upside risks to Vietnam's

Key View

• Vietnam’s new regulation will facilitate hospital access to medicines and ease the supply crisis.
• The new regulation will allow hospitals to use price quotes to set up a bidding price and achieve cheaper prices for medicines or medical equipment.
• However, the legislative changes will pose downside risks to innovative drugmakers in

Key View

• Vietnam’s external position has improved more quickly than we had anticipated, and we now expect the current account to return to a small surplus of 0.5% of GDP in 2023 rather than 2024.
• This revision reflects the likelihood of a sharp economic slowdown in 2023, which will weigh on imports, and rebounding demand from Mainland China

Key View

• The sharp slowdown in Vietnam real GDP growth to 3.3% y-o-y in Q123 was much more significant than we at Fitch Solutions had anticipated.
• We expect a recovery to take place over the remainder of the year, supported by Mainland China’s reopening, but it will likely be held back by weak global demand and the ongoing stress in the real