Input cost inflation is the main concern for the second half of 2021.

The current Covid-19 outbreak has inevitably caused a sharp drop in consumer spending and a potential rise in living costs, but exports remained a driving force for growth with consistent performance.

A cautious approach in managing inflation could help ensure the consumer price index (CPI) staying below 3%.

Vietnam’s consumer price index (CPI) is set to average 2.89% in 2021, below the government’s target of 4%.

This is seen as a positive sign for the economy amid the current serious Covid-19 situation that is having negative impacts on enterprises’ operation.

Vietnam’s economy with high level of openness could be susceptible to rising inflation as a result of growing global commodity prices.

While key economic indicators in January remains positive, the economy is set to go through a rough path amid a Covid-19 resurgence.