The Southeast Asian country'sgrowth will be driven by continued trade expansion, the faster-than-expected recovery of manufacturing, domestic travel and the disbursement of public investment, according to the ADB’s ADO Supplement July 2022 released on July 21.
Viet Nam is coping with surging global commodity prices, especially global oil prices which would increase inflationary pressure.
However, the abundance of domestic food supply in Viet Nam would help ease inflation in 2022, resulting to unchanged inflation forecast at 3.8% for 2022 and 4.0% for 2023 compared with ADB’s projection in April.
The bank also lowered its economic growth forecast for the region to 4.6% this year due to slower expansion in China, more aggressive monetary tightening in advanced economies, and fallout from the continued Russia-Ukraine tension.
Earlier, the HSBC raised its forecast for Viet Nam’s economic growth this year to 6.9%, from the previous prediction of 6.6%, which is possibly the fastest pace in the region./.