Thursday, August 11, 2022 1:16:43 PM - Markets open
VN-INDEX 1,262.39 +5.89/+0.47%
HNX-INDEX 303.76 +0.22/+0.07%
UPCOM-INDEX 92.74 -0.37/-0.40%
ADB - VN set for a strong economic rebound
Vietnam News - 4/7/2022 9:39:54 AM
 (0 ratings. You must sign in to rate.)
 Việt Nam's economy is expected to make a strong come back this year with a 6.5 per cent growth forecast, said economists from the Asian Development Bank (ADB) during a press conference yesterday in Hà Nội.
ADB said the forecast is based on the country's high vaccination coverage (more than 90 per cent according to a government source and one of the world's highest), trade expansion, and continued accommodative monetary and fiscal policies.
The Southeast Asian economy reported a 2.6 per cent growth last year as renewed COVID-19 outbreaks severely hampered its economic recovery, tightened the labour market, and disrupted manufacturing and supply chains. Inflation decelerated to 1.8 per cent in 2021 from 3.2 per cent in 2020 on weak domestic demand; last year’s inflation rate was the lowest since 2016.
The labour market suffered severe shocks from both the supply and demand sides as the economy weakened and workers left the labour force, which fell by 2 million workers aged 15 and over in Q3 from the previous quarter, said a report by ADB.
"High vaccination rates enabled the government to abandon harsh containment measures. This timely shift of the pandemic containment strategy helped restore economic activity and reduce bottlenecks in the business environment," said ADB Country Director for Việt Nam Andrew Jeffries.
A recovering labour market and other stimulus measures will spur industrial growth by a forecast 9.5 per cent in 2022, contributing 3.6 percentage points to GDP growth. The sector got off to a strong start this year. The manufacturing purchasing managers’ index rose to 53.7 in January (over 50 indicating expansion) and to 54.3 in February from 52.5 in December, the fourth straight month of growth.
The Government’s tourism-reopening policy implemented in March and the lifting of pandemic controls are expected to boost services, with the sector forecast to grow by 5.5 per cent and contribute 2.3 percentage points to GDP growth this year. Accelerated disbursements will drive construction and related economic activities.
Improved coordination between the central and local governments and restored labour mobility will continue to build domestic and foreign investor confidence. The Regional Comprehensive Economic Partnership, which came into effect on January 1, 2022, is expected to accelerate trade recovery once the COVID-19 pandemic subsides, forming stable and reliable export markets.
On the other hand, ADB voiced concern over the high number of COVID-19 infections recorded since March, saying it may obstruct economic recovery should the country fail to bring the virus under control. Uncertainties regarding global oil prices may give spur inflation, which has been said to accelerate to 3.8 per cent in 2022 and 4 per cent in 2023.
ADB also urged the country to quickly move to reform its complex and rigid public investment procedures, saying it may hinder Việt Nam’s timely implementation of the infrastructure programmes, which are crucial to long-term economic development. — VNS
Read original article here
Newer News
09/08 Việt Nam's economic growth forecast at 7.5 per cent in 2022: World Bank
05/08 Aquatic exports drop below US$1 billion in July
05/08 Rising inflation causing concern for export businesses
01/08 Vietnamese textile industry working on materials traceability for exports
27/07 Ministry projects three economic growth scenarios to 2023
25/07 VASEP wants greater imports of raw seafood materials
25/07 ADB maintains growth forecast for Việt Nam
25/07 Four reasons make Việt Nam an attractive investment destination
15/07 Việt Nam's economy is developing rapidly: expert
12/07 Việt Nam's wood exports decrease as inflation increases
Older News
04/04 Inflation storm forecast this year
31/03 Foreign investment in Vietnam continues bouncing back
29/03 CPI inches up 1.92 percent in Q1
29/03 Vietnam’s GDP up 5.03 percent in first quarter
28/03 Petrol price may go down substantially in April
23/03 VN targets $20 billion in timber exports by 2025
23/03 VN firms need to better seize incentives in the CPTPP
21/03 Reopening of tourism this month offers hope to businesses
18/03 Transport costs rise as fuel prices surge
11/03 Petrol prices up nearly 3,000 VND per litre
Newsletter Signup
Top Stories
Việt Nam's economic growth forecast at 7.5 per cent in 2022: World Bank
Shares to move up after testing supply and demand
Việt Nam in the headwinds of global rate hikes and inflation
Shares pierce May-bottom on weak investor sentiment
Vietnam’s CPI up 2.44% in six months
Market Update
Last updated at 1:15:03 PM
VN-INDEX 1,262.39 +5.89/+0.47%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.