Standard Chartered expects accelerated recovery in Vietnam in Q2

14 Apr '22

2 min read

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Vietnam’s economic recovery is expected to be stronger at the end of this year’s second quarter when domestic demand and the tourism sector recover, according to Standard Chartered Bank, which forecast in its latest Vietnam-focused macro-economic research report that the country’s recovery will markedly accelerate, with gross domestic product (GDP) growing by 6.7 per cent in the whole year.

Experts from Standard Chartered said Vietnam remains a key manufacturing centre and link in the global supply chain despite challenges related to geopolitical tensions and the pandemic, a news agency reported.

However, they also noted that the country may face short-term risks, especially those related to tourism recovery and COVID-19.

FDI inflows into Vietnam have begun to pick up this year after a slowdown in 2021. The bank expects this trend to continue, especially in the areas of electricity generation and supply, petroleum and air conditioning equipment.

Foreign investors will continue to be the main driving force for Vietnam to contribute to the global supply chain, said the bank.

Standard Chartered maintains its inflation forecast for Vietnam at 4.2 per cent for 2022 and 5.5 per cent for 2023. The bank said that supply factors will bring risks of increasing inflation, especially the current geopolitical tension.

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