“Vietnam’s economy recovered faster than expected in the first half of 2022 and continues to grow amid the challenging global environment,” said ADB country director for Vietnam Andrew Jeffries. “The steady recovery was supported by strong economic fundamentals and driven by a faster-than-expected bounce back of manufacturing and services.”
Vietnam’s economy is performing reasonably well amid uncertainties in the global economy, according to the Asian Development Outlook (ADO) Update 2022. 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.
Increasing inflation in the United States and the European Union has heightened inflationary pressure in the country. However, Vietnam’s prudent monetary policy and effective price controls, should keep inflation in check at 3.8 per cent in 2022 and 4.0 per cent 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 labour-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, could slow growth this year and the next, the report said.
ALCHEMPro News Desk (NB)
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