A view of Ho Chi Minh City (Photo: ADB)
– Vietnam’s economic growth
is expected to rebound to 6.7 percent this year despite the recent resurgence
of the COVID-19 pandemic in nearby countries, and rise to 7 percent in 2022,
according to the Asian Development Bank (ADB).
In its Asian Development Outlook (ADO) 2021
released on April 28, the ADB said Vietnam’s economic
growth will be boosted by export-oriented
manufacturing, increased investment, and expanding trade.
The growth momentum is expected to continue, thanks to ongoing reforms to
improve the business environment and Vietnam’s participation in multiple free
trade agreements (FTAs) involving
almost all advanced economies.
oil prices and increased domestic consumption is expected to push inflation up
to 3.8 percent this year and 4.0 percent in 2022, the report said, adding that
faster-than-expected recovery in China and the US would significantly
expand Vietnam’s trade and growth prospects.
The report said Vietnam can
maintain inclusive growth by softening
the pandemic’s impact on poverty and incomes.
The ADB also raised its 2021 economic growth projection for developing countries in
Asia amid ongoing COVID-19 vaccine campaigns and the sharply increasing export
demand in the world market.
developing region in Asia, comprising 45 countries in Asia Pacific, is forecast
to grow 7.3 percent by 2021, and 5.3 percent in 2022.
Meanwhile, the growth rate forecasted for the
Southeast Asian region is 4.4 percent, down from the earlier projection of 5.5
percent due to the instability in Myanmar. The Philippines, the slowest economy
in Southeast Asia last year with a 9.6-percent contraction, is forecast to grow
4.1 percent this year./.