Standard Chartered: VN's economy to grow at 6.7 per cent in 2022

Vietnam is expected to grow 6.7 percent in 2022 and 7 percent in 2023, with its medium-term outlook remaining positive. Vietnam will continue to be an important link in the global supply chain and a destination chosen by many businesses.

Investment activity in the country is expected to recover this year after being affected by the COVID-19 epidemic for a period of time.

Vietnam has a lot of potential for growth and investment attraction, and is playing an increasingly important role in international trade and global supply chain.

Vietnam is entering a very important stage of development with an expectation that its recovery and growth in 2022 and 2023 will create a strong bounce for the 2021 – 2025 period towards development goals set for 2030 and 2045.

Opportunities and challenges are intertwined, but opportunities are dominant!

The Government is drastically accelerating the implementation of a largest-ever programme for socio-economic recovery and growth, the official informed. According to him, the programme includes both short- and long-term solutions to create sustainable development drivers.

Vietnam’s economic fundamentals remain robust. The country has been one of the world’s best-performing economies during the pandemic.

But labour shortages may be more of a problem, as workers fear another round of factory closures and travel restrictions.

Prospects for 2022 are good. As factories and services approach normal, there will be a jump in output, much as China had in early 2021. Most projections are for 6–7 per cent real GDP growth.

Despite facing numerous difficulties due to COVID-19 over the past two years, Vietnam has managed to protect public health and maintain economic stability, which is the groundwork for Vietnam’s solid economic recovery in 2022.

Such results came from the Party and Government’s correct policies and direction, with the joint efforts of the business community and the people, in realising the dual goals of economic development and virus containment.

The Government made important changes to its operations and achieved positive results in its regulation. Following prolonged lockdowns and social distancing periods to deal with the fourth outbreak, the Government promptly shifted to its strategy of adapting safely and flexibly to the pandemic, both in fighting the pandemic and restoring economic development.

Vietnam should take advantage of all resources and opportunities to stimulate the recovery process and maintain growth in 2022.

Vietnam will not sacrifice social security for growth. The Government is still making efforts to maintain macroeconomic stability and keep inflation below 4%.

Policies on stepping up e-commerce and digital transformation, while building a digital economy and society, offer an opportunity for Vietnam to achieve the set targets.

Economic achievements over the past two years are the important foundations for businesses and people to have confidence in Vietnam’s economic growth prospects in 2022.

Việt Nam was a rare country that managed to maintain positive GDP growth with an increase of 2.91 per cent.

the Vietnamese economy has welcomed the good news that the National Assembly approved a socio-economic recovery programme, proposed by the Government, worth nearly VNĐ350 trillion (approximately US$15 billion).

Việt Nam should be more prudent when taking loose fiscal and monetary measures as stated in the economic recovery supporting programme as they will probably cause side-effects such as an increase in inflation, budget deficit and public debt.

The Government’s well-implemented supportive policies are necessary conditions, but entrepreneurship, perseverance, creativeness and solidarity of businesses are sufficient conditions for the success of the economic recovery and hitting the growth target.