A view of Ho Chi Minh City (Photo: ADB) In its Asian Development Outlook (ADO) 2021released on April 28, the ADB said Vietnam’s economicgrowth will be boosted by export-orientedmanufacturing, increased investment, and expanding trade.
The growth momentum is expected to continue, thanks to ongoing reforms toimprove the business environment and Vietnam’s participation in multiple freetrade agreements (FTAs) involvingalmost all advanced economies.
Rising internationaloil prices and increased domestic consumption is expected to push inflation upto 3.8 percent this year and 4.0 percent in 2022, the report said, adding thatfaster-than-expected recovery in China and the US would significantlyexpand Vietnam’s trade and growth prospects.
The report said Vietnam canmaintain inclusive growth by softeningthe pandemic’s impact on poverty and incomes.
The ADB also raised its 2021 economic growth projection for developing countries inAsia amid ongoing COVID-19 vaccine campaigns and the sharply increasing exportdemand in the world market.
Thedeveloping region in Asia, comprising 45 countries in Asia Pacific, is forecastto grow 7.3 percent by 2021, and 5.3 percent in 2022.
Meanwhile, the growth rate forecasted for theSoutheast Asian region is 4.4 percent, down from the earlier projection of 5.5percent due to the instability in Myanmar. The Philippines, the slowest economyin Southeast Asia last year with a 9.6-percent contraction, is forecast to grow4.1 percent this year./.
VNA
