Vietnam is expected to make a strong comeback in 2022

Vietnam’s GDP growth is expected to be 6.5-7.5 percent in 2022, citing strong recovery potential in manufacturing and domestic consumption.

Vietnam’s growth is expected to be 6.5-7 percent from 2022 onwards, as a sustained global recovery will ensure solid demand for Vietnamese products in its primary export markets of the United States, the European Union, and China.

Vietnam met its vaccination goal by the end of 2021 and is now focusing on administering the booster injection to combat the new Omicron variant.

The Asian Development Bank (ADB) forecasts 6.5 percent growth for Vietnam in 2022, owing to increased vaccination coverage and other reasons, while stockbroker VNDirect predicts 7.5 percent growth.

Growth-driven manufacturing and exports, significant foreign direct investment, and increasing domestic demand caused by stimulus packages.

One of the primary drivers of growth is that the country is on track to reach its goal of fully vaccinating 70% of the population this year.

If the Covid-19 situation continues under control, services are anticipated to recover in the second quarter with the restoration of tourist and entertainment.

As a result, revenue from retail and services could increase by 10 percent to 12 percent in 2022. Several businesses are putting together recovery plans.

Thanh Cong Textile Garment Company expects to boost its workforce by 20 percent as a result of numerous large orders that will keep workers employed for the first half of the year.

The tourism industry is expected to return this year but the Delta variant forced much economic activity to shut down in the third quarter of 2021, making it yet another difficult year for Vietnam.

For the second year in a row, GDP growth has slowed to 2.58 percent. The National Assembly, on the other hand, anticipates growth to pick up in 2022, with a target of 6-6.5 percent for the year.

The predicted public debt ratio of 44 percent of GDP this year appears low, but it was achieved after some data was adjusted, causing GDP to rise by VND1,000 trillion.

Despite the fact that Vietnam’s inflation fell to a six-year low of 1.84 percent in 2021, the ADB predicts it will rise to 3.8 percent next year due to global price volatility and pressure from a weaker dong against the US dollar if capital outflows occur as a result of advanced economies’ more front-loaded response to inflation. Despite these obstacles, there is hope that the country would reach new heights in 2022.

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