Vietnam's growth quickens in Q2 despite slowing exports

Vietnam's economy witnessed accelerated growth in Q2 2023, with GDP rising by 4.14%, as reported by the General Statistics Office (GSO). This increase outpaced Q1's 3.28% growth, predominantly driven by the services sector, which surged by 6.11% due to the government's policies promoting domestic consumption and tourism. However, Q2 also saw a decrease in exports by 14.2% due to sluggish global demand, leading analysts to predict a potential industrial slowdown. Despite these challenges, retail sales increased by 10.9% in H1, while consumer prices rose by 3.29%. Although Vietnam, a regional manufacturing hub, aims for a GDP growth of 6.5% in 2023, it's slower than the 8.02% expansion recorded last year.