ADB anticipates Vietnamese economy to grow at 6.7%

29/4/2021| 7:57

The nation’s economic growth is expected to rebound to 6.7% this year, despite being affected by the recent resurgence of novel coronavirus (COVID-19) cases in nearby countries, and will continue to surge to 7% in 2022, according to forecasts made by the Asian Development Bank (ADB).

As part of its Asian Development Outlook (ADO) 2021 released on April 28, the ADB believes that Vietnamese economic growth will be boosted by export-oriented manufacturing, increased investment, and an expansion of trade.

Furthermore, growth momentum is expected to continue due to ongoing reforms aimed at improving the business environment, coupled with the nation’s participation in multiple free trade agreements (FTAs) which involve almost all advanced economies globally.

Moreover, the continuous rise of international oil prices and increased domestic consumption is expected to push inflation up to 3.8% this year before reaching 4.0% in 2022, according to the report. It also stated that faster-than-expected recovery in China and the United States would significantly expand the nation’s trade and growth prospects.

The report indicates that the country can maintain inclusive growth by softening the pandemic’s impact on poverty and incomes.

Elsewhere, the ADB also raised its 2021 economic growth projection for developing countries throughout Asia amid various ongoing COVID-19 vaccine campaigns, along with the sharp increase in export demand among the world market.

Most notably, Asia’s developing region which consists of 45 countries in the Asia-Pacific region, is forecast to grow 7.3% by 2021, and 5.3% ahead in 2022.

The overall growth rate forecasted for the Southeast Asian region stands at 4.4%, down from the earlier projection of 5.5% due to ongoing instability in Myanmar. The Philippines, the slowest economy in Southeast Asia last year with a 9.6% contraction, is forecast to grow by 4.1% this year.