Vietnam Gdp

Standard Chartered economists expect the State Bank of Vietnam (SBV) to keep the policy rate on hold at 4.0% in 2022 to support economic growth and businesses, despite rising inflation.

Vietnam’s economic growth will be driven by continued trade expansion, the faster-than-expected recovery of manufacturing, domestic travel, and the acceleration of public investment.

The country is on track to reach a GDP growth of 6.8-7% this year.

Vietnam’s economy has been firm on the recovery track, with the GDP growth in the second quarter at 7.72% year-on-year, the highest second-quarter growth since 2011.

S&P forecast Vietnam’s GDP will grow 6.9% in 2022 before settling closer to its long-term trend of growing 6.5%-7% from 2023 onward.

The country, however, continues to face risks from high inflationary pressure, which, without proper action from the Government, may lift the inflation to over the 4% target set for 2022.

Not only foreign trade and manufacturing are booming, but Vietnamese domestic tourism is also gradually picking up.

The ADB forecast the country’s GDP growth to be around 6.5% in 2022 and 6.7% in 2023, a significant improvement from a modest 2.58% attained in the previous year.

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.