Standard Chartered Bank forecasts that Vietnam’s GDP growth will accelerate to 6.7 per cent in 2021 and 7.3 per cent in 2022.
|Standard Chartered forecast Vietnam’s GDP growth to skyrocket in the coming years |
“Vietnam’s economic fundamentals remain robust. The country has been one of the world’s best-performing economies during the pandemic; that said, we are closely watching the domestic COVID-19 situation,” said Tim Leelahaphan, economist for Thailand and Vietnam, Standard Chartered, in the bank’s recent Global Research report entitled “Vietnam – Strong performance continues this year”.
Vietnam began vaccinations on March 8, with around one million of the population of 96 million having been vaccinated, mainly frontline medical workers. Wider vaccination rollout is a precondition for a tourism rebound and a sustainable economic recovery, according to the UK-based bank.
Standard Chartered’s economists point out that trade data has maintained the positive momentum seen last year. Exports of telephones and parts (16 per cent of total exports) and electronics, computers and parts (15 per cent) have gained strongly in May. Vietnam recorded a trade surplus of $1.3 billion in the first four months of 2021.
The bank anticipates that faster economic growth may push up inflation, and rising food prices globally are feeding through to local inflation. It expects Vietnam’s 2021 average inflation at 3.8 per cent.