Vietnam's economic recovery gains momentum despite global uncertainties
(VOVWORLD) - Vietnam’s economic recovery is gaining momentum despite heightened global uncertainty around the protracted conflict in Ukraine, higher commodity prices, and tightening global financial conditions, according to the World Bank. The assessment was released in the May edition of the WB’s monthly Vietnam Macro Monitoring.
 The World Bank logo (Photo: WB) |
According to the report, after peaking in March the number of new confirmed COVID-19 cases declined rapidly in April, while mobility and economic activities continued to recover as industrial production and retail sales grew at their pre-COVID rates of 9.4% and 12.1% respectively.
While export growth accelerated, import growth plateaued, duly reflecting supply chain disruptions caused by the impact of China’s continued zero-COVID policy. Amid heightened global uncertainty, FDI commitments slowed for the third consecutive month, while FDI disbursement remained strong. CPI inflation rose slightly from 2.4% in March to 2.6% in April, while core inflation climbed to 1.5%, a 17-month high.
The budget registered a fourth consecutive month of surplus due to strong revenue collection amid a continued strong economic performance and falling expenditures. At present, Vietnamese recovery is gaining momentum, although authorities must remain vigilant regarding inflation, heightened risks of weaker global demand, and supply disruptions which could hinder economic prospects, the report said.