Vietnam’s economy grows faster than expected in Q2, emerges as FDI destination

Data revealed that Vietnam’s GDP grew 7.7 percent in Q2

Due to a recovery in exports and manufacturing, Vietnam’s economic growth accelerated faster than projected in Q2 2022, reported Vietnam Briefing.

Data revealed that Vietnam’s GDP grew 7.7 percent in Q2 from the same period last year, going beyond Bloomberg’s 5.9 percent median estimate. Second quarter numbers also brought the H1 rating to 6.4 percent from last year, beating GSO’s median estimate of 5.5 percent.

In recent years, it has also emerged as an alternative destination for foreign investment. As of 20 June 2022, FDI projects generated USD10.1 billion in capital, up 8.9 percent over the same time last year.

The amount of foreign investment capital that was invested in projects during H1 2022 reached its highest growth since the start of the year. This demonstrates how businesses are continuously recovering, expanding, and maintaining their operations.

The rise in adjusted investment capital demonstrates that foreign investors still choose to extend their operations because they remain confident in Vietnam’s economy and business climate.

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

According to the Central Institute for Economic Management (CIEM), Vietnam’s economy has the potential to reach a 6.9 percent expansion this year, as long as inflation averages at 3.7 percent, exports go up by 16.3 percent, and trade surplus of approximately USD2.7 billion.

VietnamPlus reports that this estimate is close to the government’s GDP growth forecast of seven percent.

Meanwhile, Standard Chartered estimates a 6.7 percent growth for 2022, with a 10.8 percent expansion in Q3 and 3.9 percent in Q4, according to Việt Nam News.

HSBC also revised its growth outlook for this year to 6.9 percent from its previous projection of 6.6 percent. However, its 2023 estimate went down from 6.7 percent to 6.3 percent. 

The Asian Development Bank (ADB) maintained its growth outlook of 6.5 percent for 2022 and 6.7 percent for 2023, which were set in Mid-April.

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