Standard Chartered forecasts Vietnam’s 2022 growth rate at 6.7 percent

Vietnam's economy is predicted to bounce back strongly, growing at 6.7 percent this year and 7.0 percent in 2023, according to Standard Chartered Bank.
Standard Chartered forecasts Vietnam’s 2022 growth rate at 6.7 percent ảnh 1Illustrative image (Source: VNA)

Hanoi (VNA) - Vietnam's economy is predicted to bounce back strongly, growing at 6.7 percent this year and 7.0 percent in 2023, according to Standard Chartered Bank. 

In the bank’s report released on January 12, Tim Leelahaphan, economist for Thailand and Vietnam at Standard Chartered, said the economy looks likely to continue bouncing back in 2022 as the pandemic improves. 

Income growth has outpaced spending growth in recent years, providing a decent savings buffer against the pandemic. 

“COVID-19 remains a key risk, at least in the short term. The first quarter could see a full resumption of factory operations, after closures in Q3/2021, and government stimulus; clearer recovery is expected in March,” he noted.

Economists at Standard Chartered said a continued improvement in the global trade environment will support exports in 2022, although import growth is likely to remain high.

Inflation may become more of a concern for Vietnam in 2022. Supply-side factors – including higher commodity prices, exacerbated by the pandemic – are likely to be a key driver near-term; and demand pressures will come into play as the economy develops further.

A prolonged virus outbreak could lead to supply-driven inflation risks. In the next two years, inflation forecasts for Vietnam are 4.2 percent and 5.5 percent respectively.

According to the Standard Chartered Bank, the State Bank of Vietnam (SBV) is expected to keep its policy rate on hold at 4 percent in 2022 to support credit growth, manage inflation risks and normalise the policy in 2023, with a hike of 50 basis points to 4.5 percent in Q4 of 2023.

Standard Chartered Bank maintains its medium-term constructive view on the VND amid expectations of a strong balance of payments. The rapid pace of appreciation since July reflects more flexible exchange rate management by the central bank.

The VND was among the best-performing emerging market currencies in 2021. However, the bank expects the pace of appreciation to slow down given that Vietnam’s current account is now in deficit, and the USD-VND exchange is approaching the limits of the rate band.

Vietnam’s surplus in the balance of payments and the central bank’s foreign exchange policy flexibility should continue to support the VND over the medium term. The bank forecasts a USD-VND rate at 22,500 by mid-2022 and at 22,300 by the end of 2022.

Ben Hung, CEO for Asia at Standard Chartered Bank, added: "The future of sustainability and our journey towards net-zero requires joint efforts and collective action.

"Vietnam is an important market in Standard Chartered’s Asia footprint and we are committed to investing in the country, to help finance its sustainable development and secure greater economic prosperity.

“We will continue to connect Vietnam with the world and provide sustainable finance to areas where it matters most. We believe that the Government’s enhanced focus on greening the economy will offer businesses and investors increased confidence to invest more into Vietnam’s sustainability agenda for the long term.”

Michele Wee, CEO at Standard Chartered Bank Vietnam, commented: “The Vietnamese economy is now on a recovery trajectory. In our market research, our clients have told us that Vietnam holds tremendous potential for growth and investment attraction.

"The country is playing an increasingly important role in international trade and the global supply chain. As a leading international bank in Vietnam, we remain fully committed to supporting the country’s strong, sustainable recovery and growth in 2022, and the years to come.”

Can Van Luc, chief economist with the Bank for Investment and Development of Vietnam (BIDV), on January 12 predicted Vietnam’s GDP growth rate at 6.5-7 percent in 2022, and CPI growth at 3.4-3.7 percent. 

Luc and his colleagues also forecast that the country’s export-import value would reach 752 billion USD in the year. 

They said limitations in the COVID-19 fight, pandemic impacts on economic sectors, slow recovery of services, and low social investment remain risks and challenges to national growth./.

VNA

See more

Some participants in the symposium held at the University of Economics Ho Chi Minh City on April 3 (Photo: VNA)

Vietnam, Belgium advance traffic safety initiatives

Belgium has been a crucial partner for the University of Economics Ho Chi Minh City and Vietnam in general in education, research, and innovation, creating meaningful collaboration opportunities with not only the university but other leading educational institutions in Vietnam

Vietnamese team locates quake victims (Photo: VNA)

Vietnamese, Myanmar, UAE teams recover three quake victims in Myanmar

Supported by the UAE rescue team’s sniffer dogs and specialised equipment, the Vietnamese team overcame intense heat and challenging conditions to locate and retrieve three Myanmar victims buried under rubble. Their joint efforts resulted in the successful recovery of all three bodies by midday.

King Philippe and Queen Mathilde of Belgium meet with children affected by Agent Orange/dioxin in Ho Chi Minh City (Photo: VNA)

Belgian King, Queen visit HCM City

King Philippe and Queen Mathilde of Belgium visited the War Remnants Museum and met with children affected by Agent Orange (AO)/dioxin in Ho Chi Minh City on April 3, as part of their ongoing state visit to Vietnam.

Truong My Lan (front, centre) and accomplices at the appeal trial that started on March 25, 2025. (Photo: VNA)

Prosecutors seek reduced life sentence for Truong My Lan in Van Thinh Phat case

At the ongoing appeal trial for the second phase of the high-profile case involving Van Thinh Phat Group and Saigon Commercial Joint Stock Bank (SCB, Truong My Lan is appealing the entire verdict, challenging her convictions for "fraudulent appropriation of assets" (embezzling nearly 30.08 trillion VND – from 35,824 secondary investors), "money laundering" (involving 445.75 trillion VND), and "illegal cross-border money transfers" (4.5 billion USD).

Officers of the Duong Dong Port Border Guard Station (Kien Giang province) carry out inspections of fishing vessels entering and exiting the Duong Dong River estuary in Phu Quoc city. (Photo: VNA)

Criminal cases initiated over IUU fishing violations

Authorities have pursued cases involving serious offenses such as illegal border crossings, fraud, document forgery, vessel monitoring system (VMS) tampering, and the unauthorised use of explosives for fishing.

At the meeting (Photo: VNA)

Binh Duong leads nation in online public services

Binh Duong is also developing a coordination framework between the provincial Public Administration Service Centre and such centres at the commune level to streamline administrative services.

Mineral resource discovery activities in the northwest region. (Photo: vietnamplus.vn)

40 gold mines discovered in northwest region

There are 40 gold mines with a total identified resource of 29.8 tonnes, and five copper mines with a total identified resource of over 13,000 tonnes in the northwest region.

Three staff members of the Department of Dyke Management and Disaster Prevention set off to join rescue efforts in Myanmar. (Photo: tienphong.vn)

Vietnam sends more personnel to rescue operations in Myanmar

This marks the first time that the staff members from the department have participated in the ASEAN-ERAT, demonstrating the spirit of “One ASEAN, One Response: ASEAN responding to disasters as one in the region” as affirmed in the ASEAN Leaders’ Declaration.

Deputy Minister of Education and Training Nguyen Van Phuc at the working session with representatives from 21 US higher education institutions in Hanoi on March 31. (Photo: Ministry of Education and Training)

Vietnam, US strengthen higher education cooperation

Deputy Minister of Education and Training Nguyen Van Phuc highlighted the growing educational partnership between the two nations, with 30,000 out of 200,000 Vietnamese citizens studying abroad being in the US. In the 2022-2023 academic year, Vietnamese students ranked fifth globally in terms of numbers of international students in the US, rising by 5.7%.

The Vietnamese rescue forces have worked tirelessly to locate survivors. (Photo: VNA)

Vietnam delivers 3 tonnes of aid supplies to Myanmar earthquake victims

The aid package includes antibiotics, digestive medications, cold and flu remedies, and basic healthcare equipment like blood pressure monitors, blood glucose metres, bandages, and disinfectants. The supplies also feature mosquito spray pumps and insecticides to prevent disease outbreaks in affected areas.