The bank said the projection was based on the strong set of data in the second quarter of 2022 and a historical track record of a generally robust performance in the second half of the year.

The forecast was made with the assumption that there will be no further severe domestic disruptions from COVID-19, and growth rate for the second half of the year is projected at around 7.6 – 7.8%.

According to the UOB, inflationary pressures on Vietnam are manageable as the main source of impact is energy while food prices are stable.

However, it noted, upside risks are significant given the rapid pace of gains in energy prices which will eventually spread to the rest of the economy, especially if higher prices persist./.