Covid-19 Vietnam

Upcoming monetary-fiscal support programs may put Vietnam in the position to become a high-income country in the 2045-2050 period.

By the end of the year, the Government expects the economy to expand by 6-6.5%, which would result in a GDP per capita of US$3,900.

Next year, the State Bank of Vietnam expects the credit expansion to be around 14%, slightly higher compared to this year, for which the central bank is committed to further restricting credit going into risky fields.

Along with drastic changes in the upcoming Land Law and continued efforts from the Government to push for public investment, there is strong confidence that the real estate market would return to a high expansion rate in 2022.

The severe Covid-19 impact has not prevented the Hanoi business community from making a significant contribution to the capital city and keeping their businesses afloat.

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

The US$221.5-million-credit is a budget support operation and comes in the form of concessional terms for a period of 30 years with a grace period of five years.

Trade turnover this year could be well over US$667 billion, representing an increase of 22.4% year-on-year, which resulted in a surplus of $3 billion.

During the 10-month period, Vietnam’s M&A market attracted over US$8.8 billion, a surge of 18% against 2020 and 13.7% compared to the pre-pandemic period in 2019.

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.