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The Government announced an action plan for economic restructuring during the 2021-2025 period for Vietnam to close its gaps with regional countries.

In the medium term, Vietnam’s vision to become an upper-middle-income economy will depend on its ability to evolve from its current growth model to productivity and innovation-led growth model.

A GDP growth of 6.5% for 2022 would be a challenge given the global uncertainties and inflationary pressure from rising key commodities prices in international markets.

Vietnam will focus on production, exports, and disbursement of public investment funds in key infrastructure projects.

While the economic growth was a decade low, it remains a positive performance given the context in which the Government was facing a challenging task of both containing the pandemic and boosting growth.

Vietnam’s strong macro-economic fundamentals mean the country continues to be an attractive destination for investors in the mid-and long term.

Barring any major disruptions such as those from the Omicron variant, Vietnam is likely to move towards a more “normal” economic expansion of 7.4% in 2022.

Rapid vaccination in September and October presumably slowed the spread of the virus, but the sharp rise of new cases still forced some provinces to reinstate lockdowns.

It is unwise to bet against the ability of Vietnam and the Vietnamese to achieve targets and challenges they set themselves, said the CEO of HSBC Vietnam Tim Evans.

The target shows the Government’s high determination and also remains in harmonization with other targets defined for 2022.

A GDP growth of 6-6.5% means the country should mobilize over VND3,000 trillion ($132.6 billion) in social investment capital.

The Government is expected to soon issue an overall economic recovery plan, which serves as the basis for localities to carry out their own push for economic development.

Vietnam’s growth prospects remain much dependent on the effectiveness of vaccination programs, restriction measures, and the implementation of supporting policies.

Vietnam’s economy suffered a contraction of 6.17% year-on-year in the third quarter.

Vietnam’s strong fundamentals remain and the country has built an enviable position in the global supply chain over the past years through its set of FTAs.

The acceleration of the vaccine rollout should help Vietnam’s economy to return to its pre-pandemic growth level next year.