VINACHEM

The growth forecast for 2022, however, is sustained at 6.5%, as expanding vaccination coverage may accelerate GDP growth, noted the ADB in its latest Asian Development Outlook Supplement.

Vietnam’s GDP contracted by 6.2% in the third quarter under severe Covid-19 impacts. This dragged GDP growth in the first nine months of the year to a historic low of 1.4%.

Trade sustained growth with a modest surplus of US$225 million in the first 11 months. Rapid vaccination in September and October presumably slowed the spread of the virus, but the sharp rise of new cases still forced some provinces to reinstate lockdowns.

On the other hand, subdued demand will hold inflation at 2.2% in 2021, less than the earlier forecast, but the projection for 2022 is revised up to 3.8% on expected volatility in global price movements and possible weakening of the Vietnam dong (VND) against the US dollar if a front-loaded response to heightened inflation in the advanced economies induces capital outflow, stated the ADB. 

- VNN-