Vietnam Inflation

The IMF forecasts Vietnam’s GDP growth in 2022 at 7-7.5%, and inflation below the 4% target set by the Government, lower than the global and regional average.

Economic resilience is essential for Vietnam to promote growth and keep inflation under control.

The World Bank recommended that the government remain vigilant about inflation risks associated with food and basic prices.

The country will continue to maneuver monetary policy cautiously and ensure credit is channeled into priority fields to aid growth.

Vietnam’s prudent policies resulted in a prolonged period of high growth, price stability, and low public debt-to-GDP ratios.

Vietnam saw an 11-year-high growth rate of 7.7% y-o-y in Q2/2022, largely reaping the benefits of re-opening tailwinds.

The Government is looking at measures to curb the rising trend of petrol prices on the domestic market, which is placing a huge burden on the economy.

Against the backdrop of rising USD value, the Vietnamese Dong has depreciated by a mild margin of 2% compared to Thai’s Bath (down 7%), Japanese Yen (14.6%), and Taiwanese dollar (5%).

Compared to other ASEAN countries, inflation pressure in Vietnam is still relatively contained.

In the five months, total exports rose by 16.3% year on year to $152.81 billion.