Vietnam’s target economic growth of 6–6.5% is possible

The country’s economic growth in Q1 2022 was consolidated thanks to the manufacturing and service sectors

During a national symposium on Monday, thought leaders pointed out opportunities and challenges to the national economy in 2021. 

NEU Rector Prof. Dr. Pham Hong Chuong stated that there were macro and financial uncertainties that have hindered economic recovery. NEU Associate Professor Dr. To Trung Thanh added that economic growth was only at 2.58 percent last year, which was a record low in two decades. They also attributed the failure to recover to ineffective and inconsistent COVID response policies rolled out by localities, along with the prolonged lockdowns in many key economic regions.

On the other hand, they also revealed how the six to 6.5 percent growth target is reachable. In at least two to three years, the government should enhance fiscal support to around five to six percent of GDP, The Star reported.

According to the World Bank’s Vietnam Macro Monitoring report, the country’s economic growth in Q1 2022 was consolidated thanks to the manufacturing and service sectors. During this period, the country’s GDP increased by 5 percent YoY, which was similar to the rate in Q4 2021 but still two percent below pre-pandemic levels.

In March, the industrial output index increased by 8.5 percent YoY, which was similar to pre-pandemic levels. Retail sales, on the other hand, increased by 9.4 percent, the second-highest rate since the COVID-19 pandemic began. The recovery can be attributed to a 10.7 percent increase in goods sales.

More: A look into Vietnam’s imports, exports, and emerging markets

The merchandise trade balance in March had a USD1.4 billion surplus.

Moreover, VietnamPlus shared that businesses in Europe are becoming confident and positive about investing in Vietnam, as they believe that the country’s economy is more likely to stabilise and improve in Q2 2022.

The European Union’s EU Green Deal is also slated to empower Vietnam in developing its own sustainable development strategy.

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