The country posted a modest GDP growth of 2.58 per cent in 2021 amid the impact of the COVID-19 pandemic. The government had earlier set a growth target of 6-6.5 per cent, according to Vietnamese media reports.
In a report released in January this year, the World Bank forecast that Vietnam's economy would expand by 5.5 per cent in 2022 given that the pandemic would be brought under control at home and abroad.
Meanwhile, Fitch Ratings affirmed Vietnam's long-term foreign-currency issuer default rating (IDR) at 'BB' with a positive outlook. The affirmation reflects continued strong medium-term growth prospects, despite the pandemic and the global economic spillovers from the war in Ukraine, and strong external finance metrics relative to peers, Fitch said in a release.
The rating remains constrained by contingent liability risks associated with the large state-owned enterprise sector and structural weaknesses in the banking sector.
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