There are many driving forces for growth for Vietnam in 2022, and the growth target of 6.0 - 6.5 percent for 2022 is quite feasible, according to foreign economists.

 

There are many driving forces for growth for Vietnam in 2022, and the growth target of 6.0 - 6.5 percent for 2022 is quite feasible, according to foreign economists.

 

In an interview recently granted to the Dau tu (Vietnam Investment Review), lead specialist and group head for the ASEAN+3 Macroeconomic Research Office (AMRO) Luke Hong said Vietnam is a trade-oriented economy so the manufacturing sector will be one of its major drivers of growth.

 

Provided that Vietnam can curb the pandemic and minimise travelling restrictions, particularly for factories and workers, its manufacturing sector will continue benefiting from a recovery in external demand, resulting in output expansion, even amid the pandemic, he said.

 

According to Hong, the service sector is another key to achieving a 6-6.5 percent growth this year.

 

Asked about AMRO’s policy recommendations for Vietnam to ensure strong growth, he said Vietnam needs to provide greater fiscal support, particularly micro-small, small and medium-sized enterprises and low-income households. Such support should be reviewed periodically to ensure their suitability and effectiveness.

 

Hong also suggested accelerating disbursement of public investment capital to propel economic growth, especially when the pandemic weighs on the demand of private sector.

 

In his view, the expansion of debt restructuring scope and extension of loan risk provision period is extremely important to ease pressure on borrowers and protect balance sheets of banks during economic recovery.

 

He said structural reform should be promoted, and more efforts are needed to develop support industries, thus enhancing Vietnam’s participation in the global value chain and improving the added value of its economy.

 

Meanwhile, World Bank’s lead economist and leader of the Macroeconomics, Trade and Investment Programme for Vietnam Jacques Morriset expressed his belief that the 6-6.5 growth target for 2022 is completely feasible.

 

In an interview granted to the Dau tu, Morriset said he is optimistic about the prospect of the Vietnamese economy on two conditions that the Government will well control fiscal policy and the economy will not be shut down again due to the pandemic.

 

He pointed out economic risks such as reliance on situation of countries worldwide and import inflation due to hike in oil prices, thus affecting goods transportation.

 

At the same time, opportunities are abound, first of all in the field of export, he said, elaborating that 80 percent of exporters in Vietnam are foreign-invested ones, who came to Vietnam to diversify their supply chains.

 

Green economy in adaptation with climate change also offers plenty of chances, Morriset said, citing the development of solar energy as an example of Vietnam's success in seizing opportunities in this field. According to him, Vietnam can do the same with wind power, battery and other green products.