The Vietnamese government is driving for economic growth of around 6% in 2023, as Prime Minister Pham Minh Chinh urges a boost to spending to bolster domestic activity.

GDP growth of 6% was the cabinet’s “best-case” scenario, as per statements on the government’s website, citing a meeting chaired by the PM. The worst-case scenario was for 5% growth, the government added.

The government has agreed to “prioritise growth, especially focusing on industrial development,” including manufacturing, according to one of the statements, Bloomberg reports. Chinh has instructed ministries to speed up public investment disbursement in line with recommendations by the International Monetary Fund.

Furthermore, the government’s latest forecast follows on a day after it was reported that GDP growth between January and September averaged just 4.2%, despite an acceleration in Q3. The official growth target for Vietnam is 6.5%.

Trade data published by the General Statistics Office at the end of last week also revealed exports returned to growth in September, ending six months of declines.

Vietnam’s economy needs to grow by 10.6% in Q4 to reach 6% for the full year, the Bloomberg report adds. A total of 7% growth in the next quarter will bring the average to 5% in 2023. In 2022, Vietnam’s GDP grew by around 8%.

Even though Vietnam’s exports returned to growth last month – bringing an end to a six-month decline – the nine-month average remained in negative territory.

Moreover, the IMF’s executive board recently stated the country’s economy requires fiscal support to drive activity. Up to now this year, Vietnam’s central bank has reduced borrowing costs four times.