Some foreign financial organisations have issued relatively positive predictions for Vietnam’s economy this year, with growth expected at 6.5 - 6.7 percent.
A package factory of the HAPLAST Joint Stock Company in northern Hung Yen province (Photo: VNA)– Some foreign financial organisations have issued
relatively positive predictions for Vietnam’s economy this year, with growth
expected at 6.5 - 6.7 percent.
Standards
Chartered held that the GDP growth will rebound strongly to 6.7 percent in 2022
and 7 percent in 2023, saying Vietnam’s medium-term outlook remains positive.
The
bank made the forecast in its latest reports titled “Still battling headwinds” and “Vietnam - Moving back
to high growth“.
“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
the 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 percent in
2022. The Government also targeted this year’s GDP expansion at 6.5 - 7 percent,
equivalent to the pre-pandemic levels.
It
noted Vietnam has recovered steadily after hitting bottom in 2021 and that it will
regain growth momentum in all aspects soon.
Manufacturing
and export are expected to retain their leading positions, partly thanks to the
stable commitments to foreign investment attraction. Besides, domestic demand
is likely to bounce back further when current restrictions are gradually
removed and the labour market revives.
HSBC
noted the biggest obstacle needing attention now is the ongoing COVID-19
outbreak, especially the appearance of the Omicron variant, but it is encouraging that the vaccination has been much improved, enough for avoding another period of widespread social distancing./.