n the second half of this year, Vietnamese exports will likely improve modestly as the global electronics cycle rebounds. (Photo: VNA)

The report pointed out that economic growth in externally oriented Vietnam rebounded in the second quarter but stayed sluggish, given the challenging global economic environment.

In the second half of this year, Vietnamese exports will likely improve modestly as the global electronics cycle rebounds. Vietnam’s domestic services and foreign tourism will likely continue outperforming and stay supportive.

The economy will be held up by easier fiscal and monetary policies, the report said, noting that Vietnam’s construction growth picked up strongly in the second quarter, with momentum to be supported by increased implementation of government infrastructure projects. Improvements would be critical for Vietnam to stay competitive and continue attracting foreign investments over the long term.

Yet, tight monetary conditions in advanced economies will likely restrain a strong upturn in global external demand for Vietnamese products and overall growth prospects, it said.

Total newly registered FDI in Vietnam grew by around 30% year-on-year in the first half after performing poorly in 2022.