The bank also lowered its growth forecast for Vietnam this year to 5.2% from the previous 5.8% forecast.

ADB experts pointed out that the weaker than expected recovery of external demand continued to impede industry and services output, thereby dragging the recovery of jobs and domestic consumption.

The prudent and proactive monetary policy, supported by effective price controls of gasoline, electricity, food, health care, and education, all contributed to containing inflation.

In line with this, Vietnam’s inflation is projected to maintain at 3.8% for this year before rising to 4.0% in 2024.