Asian Development Bank says Vietnam’s economy is poised for a strong recovery

Vietnamese workers working at factories

The Asian Development Bank (ADB) believes that Vietnam is in a position to be ready for a strong economic recovery, according to the bank’s “Asian Development Outlook 2022” report, published on June 6.

The financial institution said that “Vietnam’s economy is expected to recover at 6.5% this year, and to grow stronger at 6.7% in 2023, due to high vaccination rates, pushing up trade and continue to implement expansionary monetary and fiscal policies.”

The new COVID-19 pandemic has hampered Vietnam’s economic recovery, tightened the labor market, and disrupted manufacturing supply chains in 2021,” ADB Country Director for Vietnam Mr. Andrew Jeffries said in a statement. “High vaccination rates have allowed the Government to lift strict pandemic containment measures. The timely shift in pandemic containment strategy has helped restore economic activity and ease bottlenecks in the business environment.”

The Asian Development Bank added that a recovering labor market, along with the financial and monetary stimulus measures of the Vietnamese government’s economic development and recovery program “will boost industrial output to rise 9.5% in 2022” while agricultural output is “expected to grow 3.5% this year” as domestic demand recovers and global commodity prices rise.

ADB also said that the reopening of tourism in mid-March and the easing of pandemic control measures “is expected to boost services, with a forecast service sector growth of 5.5% in this year.”

However, the report “Asia Development Outlook 2022” also highlights short-term risks that may hinder the recovery of Vietnam’s economy. ADB said that the high number of COVID-19 infections since mid-March, “if not eased, could impede the return to economic normalcy this year.” In addition, because “the possibility of a slow recovery of the global economy and a sharp increase in world oil prices due to Russia’s invasion of Ukraine will affect Vietnam’s import-export activities and inflation,” or “the recovery also depends on the government’s rapid and effective implementation of its economic development and recovery program.”

Before ADB, as VOA Vietnamese reported, the World Bank (World Bank) assessed that “Vietnam’s GDP growth is forecasted to reach 5.3% in 2022 and then stabilize around 6 .5% under the scenario where travel restrictions are eased both at home and abroad.”

Vietnam’s economy grew 2.6% in 2021, much lower than the 7.0% average growth trend before the pandemic, according to the World Bank.

Vietnamese Prime Minister Pham Minh Chinh last month asked the Ministry of Industry and Trade to “study” the World Bank’s previous recommendation on Vietnam’s economic situation, especially related to COVID-19, according to the main portal. government.

Translated by from VOA:

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