30/12/2022
VIETNAM'S ECONOMY GROWS 8.02% IN 2022
Vietnam’s GDP growth reaches 8.02% this year, a record high in the 2011-2022 period. A strong performance across sectors boosted Viet Nam’s economy. Economic activity rebounded following the removal of COVID-19 restrictions and the achievement of nationwide vaccine coverage. GDP per capita was estimated at VND95.6 million (US$4,110), up US$393 from 2021.
With the above context, the policy responses for Viet Nam need to strike a dedicated balance among curbing inflation and maintaining economic growth, and also ensuring the STABILITY OF THE FINANCIAL SECTOR:
1/ Monetary policy.
First, maintaining price stability should be the primary focus of monetary policy.
Viet Nam has timely and decisively raised interest rates two times in October 2022 to prevent the depreciating Vietnam D**g, which could otherwise have triggered imported inflation.
2/ Fiscal policy.
Second, there should be greater and more efficient coordination between the fiscal and monetary policies. While monetary measures have tightened to stem imported inflation, targeted fiscal support becomes desirable to support firms and strengthen social protection, given increasing impacts on the labor force due to the global economic downturn.
3/ Public investment.
Third, public investment included in the latest stimulus package of early 2022 should be implemented as planned, and efforts made to accelerate its disbursement.
4/ Financial sector stability.
Fourth, we do not at this time have any fundamental systematic concerns about the financial system’s safety and soundness. There are however concerns about the corporate bond market’s liquidity and investors ‘confidence. To minimize risks to stability, it is critical that the government continues to move forward with, and tightening the requirements to be qualified as a professional investor.
We believe that with sound economic fundamentals and strong leadership, Viet Nam will be able to brace the headwinds in 2023. Viet Nam’s economic prospects for the medium and long term remain very positive, and we note that continued strong interest in Viet Nam as an FDI destination is a long-term vote of confidence.
Source: DIỄN ĐÀN KINH TẾ VIỆT NAM LẦN THỨ NĂM
Viet Nam Economic Conference 17 December 2022
National Convention Center, Ha Noi
Remarks by:
Mr. Andrew Jeffries - Country Director for ADB in Viet Nam
Vietnam’s GDP growth reaches 8.02% this year, a record high in the 2011-2022 period as the economy is recovering strongly, accordingt to the General Statistics Office (GSO).