Optimistic forecast for Vietnam’s economy in 2022

Thursday, 21/04/2022 17:27
Foreign investment funds have made optimistic forecasts about Vietnam's economic recovery in 2022 and steady growth of foreign investment inflows.

Vietnam’s economy forecast to grow beyond expectation in 2022

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Vietnam’s economy sees positive changes: World Bank

Photo for illustration. (Source: nhandan.com.vn)

Most foreign investment funds forecast that Vietnam’s GDP growth will reach about 7.5% this year based on a strong recovery in activities such as domestic consumption, construction and outbound travel, and the Government’s USD 15 billion fiscal stimulus package.

Economist at VinaCapital Michael Kokalari said he expects that household consumption in Vietnam will recover in 2022. In addition, the return of foreign tourists will boost domestic consumption.

Recent surveys in the US and some countries show that the demand for travel to Vietnam is increasing. Many organizations expect a partial recovery of international tourism will raise Vietnam’s GDP by at least 3% this year. In addition, one third of consumption in the stimulus package will be used for infrastructure development and the Government aims to actively increase investment in 2022.

Therefore, Vietnam is expected to see growth in construction activity, which accounts for 6% of national GDP, from 0.6% in 2021 to 10% in 2022, similar to pre-pandemic levels.

Vietnam continues to be a destination for foreign investment and the manufacturing sector plays an important role in supporting the Vietnamese economy during the pandemic.

According to the United Nations Statistical Office, while foreign investment in Vietnam fell only 3% in two years, global foreign investment fell by more than 40% in 2020./.