Vietnam economy grows at fastest pace for 11 years in 2Q22

  • Vietnam’s economy expanded in 2Q22 at its fastest pace in 11 years thanks to a big rebound in exports and the lifting of punishing COVID-19 restrictions, authorities said 29 Jun 22.
  • Growth in the communist nation and manufacturing powerhouse had stuttered at around 3% for two consecutive years as the pandemic shut down most of the world and authorities imposed strict lockdowns.
  • But on 29 Jun 22, the General Statistics Office said gross domestic product grew 7.72% y/y in 2Q22, its best performance since 2011.
  • Turnover from exports rose 21% to USD96.8bn in the period, the GSO added. Economic growth for the 1H22 was 6.42%, the GSO said, inching back towards the 7% enjoyed before the pandemic in 2019.
  • Earlier in Jun 22 the World Bank said Vietnam’s economic recovery “remains strong” despite uncertainties caused by the war in Ukraine, lockdowns in China and inflation.
  • It urged authorities to be “vigilant” about inflation risks associated with rising fuel and import prices, warning they could dampen the recovery of domestic demand.
  • Vietnam’s consumer price index rose 2.96% in the 2Q22, the GSO said. “Living costs are much higher due to the higher oil price,” Nguyen Thi Huyen, an office worker in Hanoi, told AFP.
  • “It’s bad that I have had to spend up to 10% more money for my family without any change in income. If this situation continues, life will be very difficult for us.”
  • Vietnam reopened to the world in mid-Mar 22 after almost two years of closure. Authorities in the one-party communist nation are aiming for year-end GDP growth of up to 6.5%.

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