return icon

Vietnam recovers impressively amid world uncertainties

With a high gross domestic product (GDP) growth rate, low inflation rate and stable exchange rate, Vietnam is a bright spot in the global economic picture.

According to HSBC, the Vietnam economy stands out in the region in terms of GDP growth, with a predicted growth rate of 6.9 percent for 2022. It is expected to become the 10th largest global consumer market by 2030, surpassing Germany and the UK.

The positive assessment takes place amid the risk of recession faced by some large economies and global financial market uncertainties, with soaring inflation and a fall of value of currencies against the dollar.

CEO of HSBC Vietnam Tim Evans said at a workshop about market prospects in 2022, held by HSBC recently, that unlike one year ago, Vietnam is witnessing bustling life with heavy traffic and new hopes.

Earlier, many institutions and leading experts in the world also gave positive remarks about Vietnam’s economy.

At the 2022 Socio-economic Forum, Francois Painchaud from the International Monetary Fund (IMF) said that Vietnam’s economy has recovered well with the highest GDP growth rate among Asian economies. It is the only country with a predicted GDP growth rate that has been raised from 6 percent to 7 percent.

The Financial Times listed Vietnam among seven economies performing well this year, which includes Indonesia, India, Greece, Portugal, Saudi Arabia and Japan.

Rockefeller International’s President Ruchir Sharma in the Financial Ttimes cited the relatively high growth rate and moderate inflation rate in Vietnam compared with other economies.

EuroCham Chair Alain Cany said Vietnam’s prospects are positive with the young, dynamic and tech-savvy workforce as the major driving force. Vietnam’s exports have surpassed Malaysia and Thailand, accounting for 19 percent of GDP (under 1 percent in 2010). Big investors like Lego, Pegatron and Foxconn have committed hundreds to billions of USD of investment in Vietnam.

The World Bank’s (WB) Chief Economist Andrea Coppola commented that Vietnam’s economy has recovered very quickly. The institution has predicted the high 7.2 percent GDP growth rate for Vietnam in 2022, highly appreciating the strong recovery of domestic demand and firm export-oriented processing and manufacturing industries.

UOB has also raised its predicted GDP growth for Vietnam from 7 to 8.2 percent.

Bright sport in global economic picture

The positive forecasts about Vietnam come amid the US Federal Reserve’s (FED) decision to raise the interest rate for the fifth time, increasing the interest rate by 300 percentage points so far (from 0.25 percent to 3.25 percent). Analysts predict that the US interest rate may rise to 4.6 percent in 2023.

A number of currencies have lost 10-25 percent of value against the US dollar, including the Japanese Yen (JPY), British Pound (GPB), Korean Won (KRW), Euro, Thai Baht (THB), Taiwanese dollar (TWD) and PHP. 

The GPB has fallen to a 40-year low, the euro to a 20-year low, the JPY a 24-year low and the KRW a 13-year low. 

Meanwhile, VND decreased by 4 percent only in the first nine months of the year.

Vietnam’s inflation rate was 2.89 percent as of the end of August, while it was 8.3 percent for the US. The inflation rate in August in Europe was 9.1 percent and 10 percent in September.

The global GDP growth rate in 2022, according to the World Bank, will be 2.8 percent, while Vietnam is expected to maintain a high growth rate of 7.2 percent as predicted by the World Bank, or 8.5 percent as predicted by Moody’s.

Vietnam’s monetary and fiscal policies have been applied in a flexible way. SBV has handled uncertainties well and succeeded in curbing the inflation rate and maintaining a stable exchange rate. 

Meanwhile, the government has cut many kinds of taxes and sped up public investments to control inflation and maintain macroeconomic stability. 

However, the liquidity of the banking system has shown signs of rapid decline since early October, and deposit interest rates have increased since late September.

Tran Dinh Thien, a respected economist, former Director of the Vietnam Economics Institute, recently mentioned the ‘erosion of enterprises’ strength’, implying ‘latent worrying problems’. He urGDP growth rate, economic recovery, financial market, ged ‘pump blood’ to the economy which is thirsty for capital.

Manuela Ferro from WB said that Vietnam needs to pay attention to debt settlement, and apply a reasonable fiscal policy to make public investments more effective.

Duy Anh


Vietnam demands Taiwan to cancel illegal drills in Truong Sa’s waters

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).

Government plans to rearrange state-owned enterprises till 2025

Deputy Prime Minister Le Minh Khai has signed a decision approving a plan of rearrangement of state-owned enterprises for the period of 2022-2025 in the form of one-member limited company, equitization, re-arrangement and divestment.

Transport Ministry urges new ship channel for large vessels in Mekong Delta

The Ministry of Transport has urged Tra Vinh Province to implement compensation payment for site clearance and resettlement support to build a new ship channel for large vessels in the Hau River.

Toan retains WBA Asia belt against Amparo in Bangkok

Le Huu Toan successfully defended his World Boxing Association (WBA) Asia minimum-weight (48kg) belt during The Challenger event on November 30 in Bangkok, Thailand.

Billions of dollars from foreigners invested in Vietnam’s enterprises

Foreign capital keeps flowing into Vietnam through many different channels, helping investors regain their confidence in the stock market and the economy.

Urban areas, parks to be built on Red River alluvium grounds

Hanoi authorities plan to build new urban areas and eco-friendly housing, and develop open space with parks, urban squares and flood parks on thousands of hectares on the alluvium grounds of the Red River area.

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

Ministry to control rice import management

The Ministry of Industry and Trade (MOIT) fears the high level of rice imports and the failure to control imports will affect domestic production.

Gambling soars during World Cup

Football betting is taking place in the open air at venues where people gather to watch World Cup matches, or quietly online.

Michelin Guide to announce first Vietnamese restaurant selections

Hanoi and Ho Chi Minh City have been selected by Michelin as the latest destinations joining the international selection, as compiled by the Michelin Guide.

Ministry to crack down on Internet ads violations

The Ministry of Information and Communications held a conference in Hanoi on November 30 to roll out Internet advertising management measures.

Seven-day Tet holiday fixed for State employees

Officials, civil servants, public employees and workers of State administrative and socio-political organisations will enjoy a seven-day Lunar New Year (Tet) and four-day National Day holidays next year.

Vietnam has opportunity for energy transition towards green growth

Vietnam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfill its energy transition target towards green growth.

PM requests combined efforts to combat IUU fishing

Prime Minister Pham Minh Chinh called for concerted efforts to fight illegal, unreported and unregulated (IUU) fishing while chairing a teleconference with 28 coastal provinces and cities on December 1.