At the conference to release the report (Photo: VNA) ADB Country Director for Vietnam Andrew Jeffries commentedthat Vietnam’s economy recovered faster than expected in the first half of 2022and continues to grow amid the challenging global environment.
The steady recovery was supported by strong economicfundamentals and driven by a faster-than-expected bounce back of manufacturingand services, he held.
The Asian Development Outlook (ADO) Update 2022 says Vietnam’seconomy is performing reasonably well amid uncertainties in the global economy.Restored global food supply chains will boost agriculture production this year,but high input costs will still constrain the recovery of the agriculturesector, it said.
Softening global demand has slowed manufacturing. Themanufacturing purchasing managers’ index in August softened to 52.7 from 54.0in June. However, the outlook for the manufacturing sector remains bullishgiven strong foreign direct investments in the sector.
ADB keeps Vietnam 2022 growth forecast unchanged at 6.5% (Photo: baodautu.vn) Increasing inflation in the US and the European Union hasheightened inflationary pressure in the country. However, Vietnam’s prudentmonetary policy and effective price controls, especially for gasoline, shouldkeep inflation in check at 3.8% in 2022 and 4.0% in 2023, unchanged from theprojection made in April’s Asian Development Outlook.
The country’s economic outlook continues to face heightenedrisks. The global economic slowdown could weigh on Vietnam’s exports. Labourshortage is expected to weigh on the fast recovery of the services andlabor-intensive export sectors in 2022.
The slow delivery of planned public investment and socialspending, especially the implementation of the government’s Economic Recoveryand Development Programme, can slow growth this year and the next, the reportsaid./.
VNA
