ADB keeps Vietnam 2022 growth forecast unchanged at 6.5%

The Asian Development Bank (ADB) has maintained its favourable economic outlook for Vietnam as it forecasts the country's gross domestic product to expand 6.5% in 2022 and 6.7% in 2023, based on the update of its flagship economic report released on September 21.

According to VNA, ADB Country Director for Vietnam Andrew Jeffries commented that Vietnam’s economy recovered faster than expected in the first half of 2022 and continues to grow amid the challenging global environment.

The steady recovery was supported by strong economic fundamentals and driven by a faster-than-expected bounce back of manufacturing and services, he held.

ADB keeps Vietnam 2022 growth forecast unchanged at 6.5% -0
Source: ITN

The Asian Development Outlook (ADO) Update 2022 says Vietnam’s economy is performing reasonably well amid uncertainties in the global economy. Restored global food supply chains will boost agriculture production this year, but high input costs will still constrain the recovery of the agriculture sector, it said.

Softening global demand has slowed manufacturing. The manufacturing purchasing managers’ index in August softened to 52.7 from 54.0 in June. However, the outlook for the manufacturing sector remains bullish given strong foreign direct investments in the sector. 

Fully normalised domestic mobility and the lifting of COVID-19 travel restrictions for foreign visitors will support a robust rebound in tourism in the second half of the year, driving the growth of the services sector, the report said.

Increasing inflation in the US and the European Union has heightened inflationary pressure in the country. However, Vietnam’s prudent monetary policy and effective price controls, especially for gasoline, should keep inflation in check at 3.8% in 2022 and 4.0% in 2023, unchanged from the projection made in April’s Asian Development Outlook.

The country’s economic outlook continues to face heightened risks. The global economic slowdown could weigh on Vietnam’s exports. Labour shortage is expected to weigh on the fast recovery of the services and labor-intensive export sectors in 2022.

The slow delivery of planned public investment and social spending, especially the implementation of the government’s Economic Recovery and Development Programme, can slow growth this year and the next, the report said.

Economy

Da Nang strengthens cooperative ties with Thai localities
Economy

Da Nang strengthens cooperative ties with Thai localities

Vice Chairwoman of the People's Committee of the central city of Da Nang Nguyen Thi Anh Thi on September 26 hosted a Thai delegation led by Thai Consul General in Ho Chi Minh City Wiraka Moodhitaporn, and Khon Kaen Deputy Governor Siriwat Pinijpanich, who are in the city to attend the "Meet Thailand in Da Nang" conference.

UN Special Rapporteur highly values Vietnam's progress
Economy

UN Special Rapporteur highly values Vietnam's progress

United Nations (UN) Special Rapporteur on the right to development Surya Deva had a dialogue in Geneva on September 18 with countries on his activities over the past year, during which he highly valued the Vietnamese Government's multidimensional poverty reduction approach.

Australian plums to be available in Vietnam
Economy

Australian plums to be available in Vietnam

Australian plums will soon be on shelves in Vietnam under the two-way agricultural market access agreement between the two countries that brings Australian plums to Vietnam and Vietnamese passion fruit to Australia, according to the Australian Government.

Vinamarine prohibits profiteering in emergency situations
Economy

Vinamarine prohibits profiteering in emergency situations

The Vietnam Maritime Administration (Vinamarine) under the Ministry of Transport strictly prohibits all acts of taking advantage of emergency situations, storms and floods to raise service prices inconsistent with fluctuations in total costs compared to normal conditions for profiteering.