Vietnam grapples with shrinking exports, power crunch

Economists downgrade forecasts, saying country 'not out of woods yet'

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Textile and apparel companies display goods at a trade show in Ho Chi Minh City: Manufacturers are grappling with weaker foreign demand and domestic turmoil. (Photo by Lien Hoang)

LIEN HOANG, Nikkei staff writer

HO CHI MINH CITY -- The Vietnamese economy is facing multiple headwinds, including shrinking exports and frequent blackouts, raising concerns over the outlook for Southeast Asia's rising manufacturing hub.

One of Asia's fastest-growing economies in recent years, Vietnam's gross domestic product expanded 8% in 2022, with global companies investing in the country as an alternative production base to China. It also benefits from a young, growing consumer market.

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