(VOVWORLD) - The General Statistics Office reports that Vietnam’s economy in the first eight months of this year has gradually regained the growth rate it enjoyed before the pandemic. Economic growth has been strong in industrial production and export and import, and inflation is under control.
 At Cat Lai port in Thu Duc city (photo: Hong Dat/VNA)
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Visible recovery
The most visible sign of economic recovery has been purchasing power. GSO statistics show that trade and service activities recovered in all sectors and stood at high rates compared to the same period last year.
In August total retail sales of consumer goods and services increased 0.6% from July and were 50.2% above August of last year. Travel and tourism revenues were 65 times what they were last August.
Strong purchasing power has boosted domestic production. The Index of Industrial Production (IIP) increased 15.6% in August and was 9.4% above August of last year. With favorable economic conditions, businesses have increased investment, production, sales. Since the beginning of the year 150,000 enterprises have newly registered or resumed operation.
In the first 8 months of the year, export turnover was 17.3% above the same period last year, showing that Vietnam continues to be a major goods supplier to the global market. Vietnam’s membership in 15 FTAs (with 2 more FTAs under negotiation) has created a lot of opportunities to expand exports and take advantage of preferential tariffs.
A Fitch Solutions report says Vietnam is emerging as an important manufacturing hub in East and Southeast Asia, supported by government-led economic liberalization efforts and integration into global supply chains through trade agreements and membership in international blocs.
Dr. Le Duy Binh, Executive Director of Econimica Vietnam, said: “The trade surplus level has greatly supported the implementation of Vietnam's monetary policies, especially in the context of pressure on the Vietnamese currency recently. The growth rate was recorded in the context that the consumer price index increased only 2.5% and basic inflation increased 1.6%.”
 Dr. Le Duy Binh, Executive Director of Econimica Vietnam (Photo: vnexpress) |
Bright prospect
The macroeconomic indicators in August increased strongly compared to the same period last year. The main reason is that Vietnam has reopened after a long period of COVID-19. The current situation shows signs of higher GDP growth in the third quarter. Standard Chartered predicts VN’s GDP in the third quarter may reach 10.8%. A number of experts say there are good reasons to believe Vietnam will see double-digit GDP growth in the third quarter.
In order to maintain its economic growth rate and minimize negative impacts from the policies of world powers, experts say Vietnam should speed up its public investment disbursement, flexibly manage its fiscal and monetary policies, and support the recovery of businesses.
Associate Professor, Dr Phan Chi Anh, Director of the Center of Business Administration Studies at the Hanoi National University of Economics and Business, said: “The business and service sectors account for 40% of annual GDP growth. If we cannot solve the problem of supporting this sector, it will lead to possible risks for GDP growth.”
Stable macro-economics in 2022 has helped Vietnam achieve its yearly growth target and create momentum for sustainable economic growth in 2023.