The World Bank recently released a forecast that Vietnam’s economy “will accelerate in 2022 with GDP growth forecasted to increase to 5.5% from 2.6% in 2021.”
The World Bank’s bulletin on January 27 cited an updated report on Vietnam’s economic situation released last month saying that with the assumption that the COVID-19 pandemic would be controlled at home and abroad, Vietnam’s service sector would be able to recover gradually as consumers and investors regain confidence, while the manufacturing sector benefits from stable demand from the United States, the European Union, and China.”
In addition, the bulletin forecasts that the budget deficit and public debt are expected “to remain sustainable, with a debt-to-GDP ratio expected at 58.8%, well below the regulatory ceiling.”
However, according to the World Bank, this outlook “still contains many risks, especially the unclear development of the pandemic.”
“The outbreak of new variants could lead to the re-imposition of social distancing measures, affecting economic activities. Weaker-than-expected domestic demand may affect Vietnam’s recovery,” the World Bank said.
“Additionally, many of Vietnam’s trading partners are facing shrinking fiscal and monetary issues, which will likely limit their ability to continue supporting their economies if the crisis continues. This could slow the global recovery and weaken demand for Vietnamese exports.”
According to the Vietnamese government’s online newspaper (VGP News), Vietnam’s National Assembly at the end of last year voted to pass a resolution on the socio-economic development plan in 2022, according to which “requires the growth rate of the total domestic products about 6-6.5%; effectively control the COVID-19 epidemic.”
In addition, VGP News reported, the resolution also clearly states the goal of “safely adapting, flexibly, effectively controlling the COVID-19 epidemic, maximally protecting people’s health and lives while focusing on removing difficulties for production and business, effectively support people and businesses.”
Thoibao.de (Translated)
Source: https://www.voatiengviet.com/a/6424996.html
