Vietnam has high regional growth prospects, predicted at more than 6.5% in 2022. (Infographic by Oxford Economics) Vietnam ispredicted with a high growth prospect in the region, at more than 6.5% in2022, 0.7% higher than the average growth of 5.8% for the whole region.
This was a keyfinding from the Economic Forecast presented by the experts at theInstitute of Chartered Accountants in England and Wales (ICAEW) Economic InsightForum Q2.
Vietnam wasable to bounce back relatively quickly in 2021 compared to the rest of theregion. With the easing of restrictions from last year’s Q4 that carried overto this year’s Q1, there has been a significant recovery in its services sectordriven by domestic tourism.
With thecurrent endemic phase, there should be a boost on the international tourismfront as travellers return to Vietnam. Realised foreign direct investmentsinflow this year should also support construction performance and labour andachieve export capacity, which remains healthy.
The ICAEWreport said that even though recovery across the Southeast Asian regionhad been uneven with the Delta COVID variant, GDP for Singapore,Indonesia, Malaysia, the Philippines, and Vietnam has risen back topre-pandemic levels – except for Thailand, which is still at 2% belowpre-pandemic levels as its tourism industry struggled with travel and mobilityrestrictions.
It was notedthat Vietnam was not particularly affected by the Delta variant wave and hencedid not experience large lockdowns that impacted its economy as much asMalaysia and the Philippines did.
On the otherhand, Singapore was able to take advantage of the increase in demand forconsumer electronics globally to increase its GDP growth by 7.6% last year./.
VNA
