Vietnam Encouraging Growth Prospects for the Economy Latin American Summary

Vietnam. Encouraging Growth Prospects for the Economy Latin American Summary Latin American Summary

Vietnam Encouraging Growth Prospects for the Economy Latin American Summary

Latin American Summary, July 21, 2022.

Today’s growth forecasts for the Vietnamese economy in 2022 remain encouraging, pointing to an annual increase in gross domestic product (GDP) of more than six percent.

According to a cover story in Nhan Dan newspaper, in its digital version, the

The Asian Development Bank (ADB) has just confirmed that it is maintaining its development forecast of 6.5 percent for this year and 6.7 percent for 2023, as announced in a previous report last April.

According to the ADB, Vietnam’s growth will continue to be driven by the expansion of business activities, the faster and stronger-than-expected recovery in manufacturing and the increase in domestic travel, as well as the level of public investment capital spending.

In addition, the plentiful supply of food in the country will help control the rise in prices, although the rise in global commodity prices, especially oil prices, will lead to inflationary pressures.

With that in mind, the financial firm estimated that inflation in this Southeast Asian nation will be 3.8 percent this year and 4 percent by 2023.

The Central Institute of Economic Management forecast GDP growth of up to 6.9 percent in the best phase when it presented the report “Vietnamese Economy in the First Six Months of 2022: Reform and Sustainable Development” last Friday.

In a less favorable environment, the rise would be 6.7 percentage points from 2021, he predicted. According to experts from the institution, among the factors that could affect the country’s economic prospects in the second half of the year are the ability to control the spread of variants of Covid-19 or possible new epidemics, as well as the pace of implementation of the recovery program for socio-economic Development.

Also, the ability to diversify export markets by seizing the opportunities offered by signed free trade agreements and managing risks related to the commercial and technological confrontation between the superpowers.

The downward trend of regional currencies against the dollar is another important factor that needs to be taken into account, the specialists estimated.

However, they warned that while the country has experience in managing the complex impact of the epidemic and the risk of a global economic recession, internal inflationary pressures are mounting.

Slightly more cautiously, the World Bank earlier this year estimated that Vietnam’s economic recovery will accelerate this year, with GDP growing 5.5 percent year-on-year, noting that greening the corporate sector is a priority for the Indochinese nation should be.

In the balance sheet for the first half of 2022, the National General Statistics Office said that Vietnam’s GDP showed a year-on-year increase of 7.72 percent in the second quarter of the year, the highest figure recorded in the past decade in January and growth in June was 6.42 percentage points.

Source: Latin Press