ADB forecasts Vietnam’s economic growth at 1.8 percent in 2020

Vietnam’s economy is forecast to expand 1.8 percent in 2020 amid the coronavirus and bounce back in next year, while economies across developing Asia will contract this year for the first time in nearly six decades but recovery will resume next year, according to a recent report released by the Asian Development Bank (ADB).
ADB forecasts Vietnam’s economic growth at 1.8 percent in 2020 ảnh 1The Thang Long Industrial Park in Hanoi (Illustrative photo: VNA)
Hanoi (VNA) – Vietnam’s economy is forecast to expand 1.8 percentin 2020 amid the coronavirus and bounce back in next year, while economiesacross developing Asia will contract this year for the first time in nearly sixdecades but recovery will resume next year, according to a recent reportreleased by the Asian Development Bank (ADB).

ADB economic expert Nguyen Minh Cuong said that Vietnam’s economy is expected togrow 1.8 percent in 2020 amid the COVID-19 pandemic and bounce back to 6.3percent in 2021.

Lower domestic consumption and weak global demand caused by COVID-19 have hurtVietnam’s economy more than expected, he said.

However, according to Cuong, the country is recovering faster than most of similareconomies in the region, thanks to benefits from the involvement in bilateraland multilateral trade agreements.

In addition, positive signals of global trade, investment and production trendswill influence the Vietnamese economy in the near future, Cuong said.

The Asian Development Outlook (ADO) 2020 Update forecasts -0.7 percent grossdomestic product (GDP) growth for developing Asia this year, marking its firstnegative economic growth since the early 1960s. Growth will rally to 6.8percent in 2021, it says.

About three-quarters of the region’s economies are expected to post negativegrowth in 2020.

The inflation forecast for developing Asia is revised downwards to 2.9 percentthis year from 3.2 percent forecast in April, due to continued low oil pricesand weak demand.

Inflation for 2021 is expected to ease further to 2.3 percent.

Most economies in the Asia and Pacific region can expect a difficult growthpath for the rest of 2020, said ADB Chief Economist Yasuyuki Sawada.

The economic threat posed by the COVID-19 pandemic remains potent, as extendedfirst waves or recurring outbreaks could prompt further containment measures,he noted.

He went on to say that consistent and coordinated steps to address thepandemic, with policy priorities focusing on protecting lives and livelihoodsof people who are already most vulnerable, and ensuring the safe return to workand restart of business activities, will continue to be crucial to ensure theregion’s eventual recovery is inclusive and sustainable.

To mitigate the risk, governments in the region have delivered wide-rangingpolicy responses, including policy support packages — mainly income support — amountingto 3.6 trillion USD, equivalent to about 15 percent of regional GDP.

China is one of the few economies in the region bucking the downturn. It isexpected to grow by 1.8 percent this year and 7.7 percent in 2021, withsuccessful public health measures providing a platform for growth.

In India, where lockdowns have stalled consumer and business spending, GDPcontracted by a record 23.9 percent in the first quarter of its fiscal year (FY)and is forecast to shrink 9 percent in FY2020 before recovering by 8 percent inthe next one.

Sub-regions of developing Asia are expected to post negative growth this year,except East Asia which is forecast to expand by 1.3 percent and recoverstrongly to 7 percent in 2021.

Some economies heavily reliant on trade and tourism, particularly in thePacific and South Asia, face double-digit contractions this year. Forecastssuggest that most of developing Asia will recover next year, except for someeconomies in the Pacific including the Cook Islands, the Federated States ofMicronesia, the Marshall Islands, Palau, Samoa, and Tonga./.
VNA

See more

VinFast showcases its complete range of electric vehicles at the BIMS 2024 exhibition. (Photo: VNA)

Vietnamese products rise from villages to global markets

Many Vietnamese brands like VinFast, Hoa Phat, Viettel, Vinamilk, and GrowMax have steadily increased their market share at home, expanded their export markets, and built production and value chains, all while contributing to the country’s economic growth.

At the forum (Photo: baoquocte.vn)

Vietnam – a land of opportunities for Nordic firms

Ole Linnet Juul, Senior Chief Advisor of the Confederation of Danish Industry, commended Vietnam’s recent strides, particularly in institutional reforms, technological advancements, innovation, and digital transformation.

Apartments building in HCM City. 2025 is predicted to be a crucial foundation year for the real estate sector in HCM City. (Photo baoxaydung.com.vn)

HCM City real-estate market predicted to recover this year

2025 will serve as a crucial foundation year for the real estate sector in Ho Chi Minh City, marking the path towards a full recovery by 2026 after facing challenges caused by COVID-19 and economic recession, experts predicted.

The Commission for Management of State Capital at Enterprises transfers the rights and responsibilities of the agency representing state capital ownership to the Ministry of Finance. (Photo: VNA)

State capital ownership rights transferred to Ministry of Finance

After merging with the Ministry of Planning and Investment and receiving 18 state-owned groups and corporations from the Commission for Management of State Capital at Enterprises (CMSC), the Ministry of Finance acts as the 'backbone' of the economy, managing all financial resources from public investment and resources from these groups and corporations, to foreign loans.

At the ceremony on February 28 to officially transfer MobiFone Telecommunications Corporation from the commission to the Ministry of Public Security. (Photo: VNA)

State-owned MobiFone now under Ministry of Public Security

MobiFone's profit before tax in 2024 was estimated at over 2 trillion VND (78.23 million USD), exceeding its annual target by 20.6%. The corporation's digital services sector has witnessed high growth rates across many products and services, including MobiFone Meet (1,050%), Cloud (312%), mobiAgri (49%), and MobiFone Invoice (58%).

Investors monitor the development of the stock market at MB Securities JSC (Photo: VNA)

Vietnam pushes to elevate stock market

Vietnam will create favourable conditions for the stock market to develop more breakthrough and innovative products, enhancing the quality of market offerings and attracting more investors.

The economy's total credits reach over 15.6 quadrillion VND (610.3 billion USD) in 2024 (Photo: VNA)

Banking sector urged to expand credits to support economic growth

SBV Deputy Governor Dao Minh Tu stated that an average credit growth of over 2% would contribute to a 1% increase in the country's GDP. Therefore, for 2025, the central bank aims for a credit growth target of around 16% to contribute to the economic growth target of 8%.

Garment production at May 10 Corporation (Photo: VNA)

Vietnam emerges as key hub for int’l textile manufacturers

Vietnam’s textile sector, comprising around 7,000 companies and over 3 million workers, dedicates 80% of its production capacity to exports and 20% to domestic consumption. The industry’s growth is supported by a well-developed logistics network, a skilled workforce, and a stable political environment.

Apartment buildings along Metro Line 1 and Vo Nguyen Giap Boulevard, Thu Duc city. (Photo: VNA)

Metro Line 1 prompts investments in HCM City's eastern apartment market

The newly operational Metro Line 1 is a key driver for real estate projects, particularly in retail and office spaces. The commercial real estate sector typically lags behind the residential market. As communities grow and stabilise, demand for commercial spaces rises accordingly.