Viet Nam sustains robust recovery trend
VGP - Viet Nam’s economic recovery remains strong, despite heightened global uncertainties including higher commodity prices and supply chain disruption.
This assessment is part of the June Global Economic Prospects released recently by the World Bank.
Industrial production continued to witness a robust expansion of 10.4 percent on-year, while retail sales growth rebounded at 4.2 percent on-month and 22.6 percent annually, thereby suggesting a strong recovery in terms of private consumption.
Especially, Viet Nam welcomed 173,000 international visitors in May, representing a month-on-month increase of 70 percent, the highest figure since April 2020, but accounting only 16 percent of that in the pre-pandemic period.
FDI commitment also fell for the fourth consecutive month due to external negative impacts.
CPI inflation picked up from 2.6 percent in April to 2.9 percent in May, with this largely being driven by a rise in gasoline and diesel prices which stand 54.5 percent higher than in May last year.
Producer price inflation showed signs of easing in May as both input costs and output prices have been rising at their slowest rates for three months, whilst credit growth remained strong at 16.9 percent on-year, while overnight interbank interest rates dropped sharply from 1.73 percent in April to 0.33 percent as of the end of May.
The state maintained a bumper harvest for the fifth consecutive month. The Government does not borrow much in the domestic market, with the volume of Government bonds and Government-guaranteed bonds issued in the first 5 months of 2022 only reaching 14.1 percent of the plan, less than half of the recorded rate.
The international lender proposed the government encourage investment to help increase aggregate supply. Investment in alternative energy production is likely to be the way to reduce the economy's dependence on imported fuels in the medium term and promote greener growth.
The Government needs to encourage investment to help increase aggregate supply. Investment in alternative energy production is likely to be the way to reduce the economy's dependence on imported fuels in the medium term and promote greener growth, the World Bank suggested.
Earlier, in its latest Global Economic Prospects report, the World Bank forecast that growth in the East Asia and Pacific (EAP) region has decelerated rapidly with a sharp slowdown in China.
The World Bank predicted that a revival of activity supported by the removal of COVID-related restrictions in Viet Nam is expected to lead to growth of 5.8 percent in 2022 strengthening further to 6.5 percent in 2023 and 2024./.