(VOVWORLD) - Vietnam’s economy is expected to grow 6.5% this year and 6.7% next year, due to a high vaccination rate, trade expansion, and continued accommodative monetary and fiscal policies, according to a new report released on Wednesday by the Asian Development Bank (ADB).
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Electronic assembly at Samsung Vietnam's manufacturing plant.
(Photo: ADB)
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At a briefing, ADB’s principal country economist Nguyen Minh Cuong said, “Most of the economic indicators show a recovery. In the current context, ADB's economic growth forecast for Vietnam is relatively positive. This is based on a number of reasons.”
“First, it is due to the recovery of industry, especially manufacturing and processing, which come from the strong recovery of labor and businesses. Second is trade and investment. Trade continues to grow. Foreign investment in Vietnam continues to rise. The next important growth driver is the financial-monetary stimulus measures and policies in the economic recovery and development package approved by the National Assembly in January. The support package is expected to continue to stimulate Vietnam's economic recovery and growth this year and next,” said Cuong.
According to ADB’s analysis, this year Vietnam’s industrial growth will reach 9.5%, agriculture output is expected to grow 3.5%, while inflation is expected to accelerate to 3.8% in 2022 and 4.0% in 2023.
The Regional Comprehensive Economic Partnership, which came into effect on 1 January 2022, is expected to boost trade recovery once the COVID-19 pandemic subsides, forming stable and reliable export markets for Vietnam. As a result, Vietnam’s goods exports might increase between 8 and 10% this year, said the ADB.