The event was held to announce the Asian Development Outlook 2022 newly released by the ADB and update about Vietnam’s economic prospect this year.
Much was expected of the economy last year, but the resurgence of COVID-19 has pulled down the GDP growth to just 2.6 percent, according to ADB Country Director for Vietnam Andrew Jeffries.
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The Asian Development Bank (ADB) announces the Asian Development Outlook 2022 at a press conference in Hanoi on April 6. (Photo: baoquocte.vn) |
Vietnam’s economy is expected to rebound to 6.5 percent this year and further expand to 6.7 percent in 2023, due to the high vaccination rate, he said, adding that this will allow the government to implement more flexible virus control measures, push for trade expansion, further accelerate regional partnership and boost tourism.
He also highly spoke of the government’s Economic Recovery and Development Program approved by the National Assembly in January.
The ADB, on the other hand, highlighted near-term downside risks that could cloud Vietnam’s recovery, for example, the high COVID-19 infections and the slowing global recovery that could affect Vietnam’s external trade.
Jeffries said that Vietnam’s macro-economy remains stable with improved investment environment and the help of multilateral free trade agreements. These factors would enable the country to lure more investment, boost foreign trade and support the economy recovery.
According to the report, a recovering labour market, along with monetary and fiscal stimulus measures of the government’s Economic Recovery and Development Program, will spur industrial growth by a projected 9.5 percent in 2022. Agriculture output is expected to grow 3.5 percent this year, on revived domestic demand and rising global commodity prices.
The reopening of tourism in mid-March and easing of pandemic controls are expected to boost services, with the sector forecast to grow by 5.5 percent this year. Accelerated public funding disbursements will drive construction and related economic activities. In tandem with the economic revival and the uncertainty of global oil prices, inflation is expected to accelerate to 3.8 percent in 2022 and 4.0 percent in 2023.
The ADB forecast Asia’s developing economies to grow 5.2 percent this year and 5.3 percent in 2023, thanks to a robust recovery in domestic demand and continued expansion in exports. Inflation in the region remains manageable but is forecast to rise to 3.7 percent this year, before moderating to 3.1 percent in 2023.
Source: VNA