HCMC – Vietnam’s economy is expected to retain its predicted growth of 6.5% in 2022 and 6.7% in 2023, according to an Asian Development Bank’s economic update for Vietnam issued on September 21.
“Vietnam’s economy recovered faster than expected in the first half of 2022 and continues to grow amid the challenging global environment,” said Andrew Jeffries, ADB Country Director for Vietnam.
The steady recovery was fueled by strong economic fundamentals and a sharp rebound in manufacturing and services, added Jeffries.
Vietnam’s gross domestic product growth rate was 7.7% in the second quarter of 2022 and averaged 6.4% in the first half of the year.
The growth rate was higher than in the same period in 2020 and 2021, but it was still below the pre-pandemic level.
Both industrial production and retail sales substantially expanded in August over July, rising by 15.6% and 50.2%, respectively.
Between January and June, domestic tourism drew 60.8 million visitors. The number of passengers increased 1.3 times since the Covid-19 pandemic and by 1.9 times compared to the first half of 2021.
Exports reached US$250.8 billion in the first eight months, up 17.1% year-on-year, while imports grew 13.6% to US$246.8 billion.
Dragon Capital, a Vietnam-focused financial institution, hailed the country’s stock market prospects due to political stability and the macroeconomic policy.
However, the country’s economic recovery has been hampered by the global economic downturn, labor shortage and the delayed disbursement of public investment.
In August, Vietnam saw a decrease in orders from a range of partners, including South Korea and Taiwan, according to ADB.
Market demand for various electronic devices is on the decline, noted HSBC.
Moreover, inflation risks and growing food and fuel costs have been a source of concern for the country’s economy, according to the World Bank (WB).
Still, Vietnam’s economic recovery has continued despite growing economic uncertainty and declining economic growth in major trading partners, added the WB.
The WB suggested that the Government prioritize alternative energy generation and consumption to reduce the nation’s dependence on imported fuels and promote greener growth.