London (VNA) – Vietnam willcontinue to be one of the fastest growing mid-range economies with an economic expansionof around 6% in 2023, according to Andrew Huntley, Senior Managing Director at BDA Partners, a London-based investment banking advisor for Asia.

Huntley commented that although the growth is lower than that in 2022, it is similar to the level recordedbefore COVID-19 broke out in 2019.

He said that the growth rate of 8.02% in2022 showed the strong recovery of the Vietnamese economy, with great contributions fromhigh domestic consumption and exports.

Trade deals with the EU, the UK and Canadaare also an important factor contributing to the strong growth of Vietnam in2022, he said.

The expert was of the view that in 2023, tourismwill be a bright spot that helps boost the country’s development, along withforeign direct investment.

However, he said that the Vietnameseeconomy will face many challenges this year, including impacts from instabilityin the world economy, which may affect the country’s exports.

Another challenge for the country is thedouble pressure from inflation and interest rates in the context that Vietnamis still dependent on imported raw material and energy.

Despite the challenges, Huntley isoptimistic about the outlook of the Vietnamese economy in the medium term, asVietnam has many factors supporting economic growth in followingyears, including social stability, internal strengths, a focus on technology and education, and a young workforce. Vietnam is also experiencing strong domestic growthwhen people are seeking higher health care service quality and livingconditions, while the Government is providing better infrastructure system, hesaid, adding that these make the country an attractive destination for globalinvestors.

According to Huntley, many investors also see Vietnam as an attractive market.

In the M&A area, many financialbusinesses and investors see Vietnam in the Southeast Asian regionas a good chance for them. In order to continue promoting growth, Huntley recommended that the Vietnamese Government focus on tackling the ineffectiveness of thecentral and local administrations to ensure all investment programmes andprojects receive suitable support.

At the same time, the country should increaseprogrammes to introduce its strengths to the international community, notlimiting to areas of agriculture and tourism but also in the fields needing sustainable investment such as environment, climate change response, the use of farming land,and the impacts of climate change on rivers and forests.

Huntley is one of the three CEOs and co-founderof BDA Partners. Currently, he is in charge of life sciences and globalhealthcare with his office based in Ho Chi Minh City./.