Vietnam’s economic growth forecast to recover strongly this year

Thursday, 13/01/2022 16:06
Positive predictions for Vietnam’s economy this year, with growth expected at 6.5 - 6.7 percent, have been issued by foreign financial organisations.

Photo for illustration (Source: VTV)

Standards Chartered held that the GDP growth will rebound strongly to 6.7 percent in 2022 and 7 percent in 2023, saying Vietnam’s medium-term outlook remains positive, said the Vietnam News Agency.

The bank made the forecast in its latest reports titled “Still battling headwinds” and “Vietnam - Moving back to high growth“.

“The economy should continue to bounce back in 2022 as the pandemic improves. Income growth has outpaced spending growth in recent years; this provides a decent savings buffer against the pandemic.” said Tim Leelahaphan, economist for Thailand and Vietnam at Standard Chartered.

“COVID-19 remains a key risk, at least in the short term. The first quarter could see a full resumption of factory operations, after closures in Q3/2021, and government stimulus; clearer recovery is expected in March,” he noted.

Economists at Standard Chartered said a continued improvement in the global trade environment will support exports in 2022 although import growth is likely to remain high.

In the recent “Vietnam at a glance” report, HSBC said after two years of growth slowdown, the country’s economic growth will accelerate to reach 6.5 percent in 2022. The Government also targeted this year’s GDP expansion at 6.5 - 7 percent, equivalent to the pre-pandemic levels.

It noted Vietnam has recovered steadily after hitting bottom in 2021 and that it will regain growth momentum in all aspects soon.

Manufacturing and export are expected to retain their leading positions, partly thanks to the stable commitments to foreign investment attraction. Besides, domestic demand is likely to bounce back further when current restrictions are gradually removed and the labour market revives.

HSBC noted the biggest obstacle needing attention now is the ongoing COVID-19 outbreak, especially the appearance of the Omicron variant, but it is encouraging that the vaccination has been much improved, enough for avoding another period of widespread social distancing.

Hai Phong works to maintain top position in FDI attraction

The northern port city of Hai Phong is working to continue to improve its business and investment environment to attract large investors and maintain its leading position in investment attraction.

Hai Phong city (Photo: haiphong.gov.vn)

According to the Ministry of Planning and Investment, in 2021, Hai Phong drew over 5.1 billion USD in foreign direct investment (FDI), the highest among localities nationwide, up nearly 3.4 times compared to that in the same period last year.

Commenting on the business and investment environment of Hai Phong, Wu Yu Gan, Deputy General Director of Flat Vietnam, said that his firm has received effective and practical support from authorities of Hai Phong, a promising investment destination.

Le Trung Kien, head of the Hai Phong Economic Zone Management Board said that the bright spot in FDI attraction of Hai Phong is the success in luring big investors with high technologies, including LG. By the end of 2021, local industrial parks attracted 420 FDI projects worth nearly 19.1 billion USD, according to the Vietnam News Agency.

In 2022, the city aims to lure 2.5-3 billion USD. Right in January, the board accepted a 35-million USD project from a Chinese investor.

At a recent confrrence to implement the Resolution on socio-economic, defence, security tasks of the city in 2022, Secretary of the municipal Party Committee Tran Luu Quang held that the city will face challenges in FDI attraction in the time to come.

In order to continue maintaining its FDI results, the city should roll out measures to attract human resources to work in IPs, he said, adding that in the 2021-2026 period, the city needs about 200,000 labourers from other localities.

Along with giving support to workers in health care services and housing, the city will speed up administrative reform to make it easier for investors during their investment process, while focusing on human resources training, he added.

Vietnamese photographer wins gold at int’l photo contest RGB 2021

The photo “Afternoon on the Cat Ba Bay” by Vu Manh Cuong has won the International Federation of Photographic Art (FIAP) gold medal at the international photo contest RGB 2021.

Afternoon on the Cat Ba Bay (Photo: Vu Manh Cuong)

The contest honours outstanding works of both professional and amateur photographers around the world in the four categories of Open Monochrome, Open Colour, Nature and Photo Travel.

Vietnamese photographers winning the ribbon award at this contest include Duong Duy Khang with “Ben thuyen Tam Coc” (Tam Coc Marina), Vu Manh Cuong with “Wayback 2”, Duong Vu with “Feeding 3” and “Tinh phu tu 2” (Father Love 2), and Vu Hai with “Mu Cang Chai tourist site”.

Red River Delta named among top 52 Places for a Changed World

The Vietnamese Red River Delta has been named among the list of the top 52 Places for a Changed World in 2022, as selected by the New York Times of the United States.

The New York Times said its annual list of destinations to visit this year focuses on spots where visitors can be part of the solution to problems such as over-tourism and climate change.

Quan ho singing (Photo: toquoc.vn)

According to the US media outlet, travelers will undoubtedly flock to the country’s world-famous beaches and dynamic megacities once travel begins to normalise again.

“But head north to the traditional villages of the Red River Delta, and you can immerse yourself in centuries-old cultural practices and a way of life that is at risk of disappearing,” says the newspaper.

Charly Wilder, editor of the New York Times, noted in the article that since ancient times, villagers along the Cau river in northern Vietnam have sung Quan Ho, a call-and-response folk music style performed by alternating all-female and all-male duets. They typically come from neighbouring villages, with this being recognised as part of UNESCO Intangible Cultural Heritage in 2009, according to the Voice of Vietnam.

“In the decade since, 49 ancient villages in Bac Ninh and Bac Giang provinces have taken measures to safeguard the cultural heritage of Quan Họ, which includes countless rituals celebrating culinary traditions and to address rural-urban migration through cultural tourism,” he added.

Wilder went on to reveal that several Hanoi-based tour operators, such as Vietnamstay and Khoa Viet Travel, have offered guests the chance to explore the villages’ Buddhist temples, craft communes, Ly Dynasty pagodas, and waterways while also helping to preserve the past.

Other destinations to make the New York Times’ list include Chioggia of Italy, Chimanimani National Park of Mozambique, Queens of New York, Northumberland of the UK, Zihuatanejo of Mexico, Ibera Park of Argentina, and the Alentejo Wine Region of Portugal. This is in addition to the Lucayan Archipelago of the Bahamas, Turk & Caicos, Evia of Greece, Cobscook Shores of Maine, Hoonah of Alaska, Cleveland of Ohio, and Courmayeur of Italy.

Cashew nut exports to EU likely to inch up 15% this year

Vietnamese businesses are expected to export 155,000 tonnes of cashew nuts worth US$900 million to the European Union in 2022, representing a rise of 15% in volume and 10% in value compared to 2021, the Voice of Vietnam quoted the forecasts set out by the Ministry of Industry and Trade.

Photo for illustration (Source: CPV)

Last year witnessed businesses ship 135,000 tonnes of cashew nuts worth US$816 million abroad, an increase of 16.5% in volume and 7.9% in value compared to the previous year, despite complicated developments of the COVID-19 pandemic causing several difficulties in production, customs clearance, and high freight rates.

This positive growth can largely be attributed to high demand for the nuts in the EU market throughout the Christmas and New Year period.

There have been significant changes occurring in the export structure of cashew nuts to the market, with a specific focus on the types of W320 and W240, especially high-added value products such as W180.

At present, the EU makes up the country’s second largest cashew nut export market, accounting for 23% of the entire sector’s total volume and 22% of its total value.

Local cashew nut exports to the bloc have enjoyed a zero tax rate since the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) back in August 1, 2020.

This move has helped the local cashew industry increase exports to the demanding market and contributed to expanding its market share in several niche markets over the coming year./.

Compiled by BTA

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