Vietnam sees 7.7% economic growth in Q2 2022, the fastest expansion in 11 years

Vietnam is gaining ground as an exporter of information and communication technology, and its market share may grow in the future

Vietnam saw the fastest growth in 11 years as its economy expanded 7.7 percent during the second quarter of 2022, reported TheStar. This expansion is attributed to a huge recovery in exports and the lifting of COVID-19 restrictions. 

According to the General Statistics Office (GSO), economic growth in Q1 2022 was 6.4 percent, edging closer to the seven percent recorded before the epidemic in 2019.

Nguyen Thi Huong, head of the GSO, said that the country’s GDP will likely reach seven percent this year, beating the government’s target of six to 6.5 percent. “We expect growth to be at a very high rate in the next six months as every sector is recovering strongly,” said Huong, citing the strength in manufacturing, exports, and services sectors. 

“Third-quarter GDP growth could even be a double-digit number,” she added.

Chua Han Teng, an economist from DBS, Singapore’s largest bank, seconds this number and points to the service sector. He believes will continue growing fast, especially once COVID-19 becomes an endemic disease, according to the Vietnam Times.

According to him, Vietnam is gaining ground as an exporter of information and communication technology, and its market share may grow in the future.

While the Ukrainian crisis, China’s lockdowns, and inflation have contributed to uncertainty, Vietnam’s economic recovery “remains strong,” said the World Bank.

VietnamPlus reports that the country’s GDP maintained positive growth in 2020 and 2021. The increase in import-export and investment, especially foreign direct investment (FDI), contributed to this. 

More: Vietnam reaches USD14 billion in FDI in H1 2022, South Korea among top investors

During the first half of 2022, FDI into Vietnam grew by approximately nine percent to USD10.1 billion.

This year, the Asian Development Bank expects the economy to grow to 6.5 percent and 6.7 percent in 2023. The International Monetary Fund, however, projects a six percent expansion in 2022 and 7.2 percent next year.

The Property Report editors wrote this article. For more information, email: [email protected].