Vietnam grows on strong footing: German newspaper

Illustrative image (Photo: VNA)

Berlin (VNA) – Vietnam has seen strong growth intwo years of COVID-19 and an increase in foreign direct investment (FDI),according to an article on the Southeast Asian nation’s development freshly publishedon Germany’s Junge Welt newspaper.

The author, Gerhard Feldbauer, noted that while westerneconomies are showing signs of recession, Vietnam's economy is developing well.

The article cited data from the General Statistics Office ofVietnam, which showed that up to 85% of businesses surveyed expressed their optimismin the third quarter of 2022, with only 15% were pessimistic about the comingmonths.

The author assessed that Vietnam seems to have successfullyovercome the difficulties of the world economy caused by the conflict inUkraine. Its GDP in the second quarter this year expanded by 7.72% over the sameperiod in 2021 and grew sharply from 5.05% in the first quarter. This positiveresult was mainly due to the strong increase in exports. In June alone,Vietnam's exports jumped by 20% year-on-year.

A screenshot of the article (Photo: VNA)

According to HSBC, Vietnam was among the fastest growingcountries in the region because it was one of the few in the world that still attainedgrowth in two consecutive years since the beginning of COVID-19. Vietnam'seconomy started 2022 on a firm footing. Sticking with a policy to"co-live with the virus," the country has accelerated its vaccinationdrive and gradually removed local restrictions, fuelling consumer sentiment,leading to an ongoing rebound in local consumption.

HSBC noted that Vietnam's foreign direct investmentis also increasing, for example, Samsung recently started building a 220million USD R&D centre in Hanoi, its largest in Southeast Asia, and is setto expand its plants in northern Bac Ninh and Thai Nguyen provinces. Meanwhile, Applehas also moved 11 factories from Taiwan to Vietnam./.

VNA