Vietnam's economic growth in 2022 projected at 6.5-6.7%

17 Jan '22

2 min read

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Several foreign financial organisations have issued relatively positive predictions for Vietnam’s economy in 2022, with growth expected at 6.5-6.7 per cent. Foreseeing a positive medium-term outlook for the country, Standards Chartered recently forecast that the gross domestic product (GDP) growth will be 6.7 per cent this year and 7 per cent in 2023.

“The economy should continue to bounce back in 2022 as the pandemic improves. Income growth has outpaced spending growth in recent years; this provides a decent savings buffer against the pandemic.” said Tim Leelahaphan, economist for Thailand and Vietnam at Standard Chartered.

“COVID-19 remains a key risk, at least in the short term. The first quarter could see a full resumption of factory operations, after closures in Q3/2021, and government stimulus; clearer recovery is expected in March,” he noted.

Economists at Standard Chartered said a continued improvement in the global trade environment will support exports in 2022 although import growth is likely to remain high.

In its recent ‘Vietnam at a glance’ report, HSBC said after two years of growth slowdown, the country’s economic growth will accelerate to reach 6.5 per cent in 2022. The government also targeted this year’s GDP expansion at 6.5-7 per cent, equivalent to pre-pandemic levels, it said.

It noted Vietnam has recovered steadily after hitting bottom in 2021 and that it will regain growth momentum in all aspects soon, according to Vietnamese media reports.

HSBC noted the biggest obstacle needing attention now is the ongoing COVID-19 outbreak, but it is encouraging that vaccination has been much improved, enough for avoiding another period of widespread social distancing.

Fibre2Fashion News Desk (DS)

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