According to data released on December 29, the Vietnamese government reported that the country’s gross domestic product (GDP) increased by 2.58% in 2021, lower than the 2.91% growth rate in 2020.
Although the growth compares well with the 2.2% median estimated by analysts and is higher than the government’s forecast of 2.5%, it is still at the lowest level in 30 years, showing how severe the Vietnamese economy is hit by the Covid-19 pandemic.
The Hanoi General Statistics Bureau stated that the growth rate in the fourth quarter was 5.22%, but the annual figure was dragged down by the 6.02% contraction in the third quarter.
The office said in a statement: “Since the end of April, the complexity of the Covid-19 pandemic has severely affected business and service activities…slow down the growth of the service industry and the economy as a whole,” but it added, “ Given that the pandemic has severely affected all sectors of our economy, economic growth is a good result.”
The “huge impact” of the pandemic blockade
The office pointed out that for at least three months, almost the entire country has been in a state of complete lockdown, which has had a huge impact on production, supply chains, domestic consumption and export-oriented enterprises.
The office said that looking ahead, with the development momentum of travel and tourism, increased domestic demand and government stimulus measures, Vietnam’s economy is expected to accelerate its recovery from the pandemic in 2022, and progress around the spread of the Omicron virus variant is still pending.
Promising prospects in the next few years
Although several problems faced by Vietnam in 2021 may continue until 2022, the government forecasts a GDP growth of 6% to 6.5%, which is in line with its economic plan for 2021-2025, which focuses on the digital economy and high-tech industries. , Urban economic development, strengthening the role of regional interconnection and key economic zones, and adjusting the overall structure of the industry to achieve a green and sustainable economy.
Given its favorable policies for investors, relative economic and political stability, cost-effectiveness, and growing consumer demand from the growing middle class, Vietnam may also continue to be a strong candidate for the Association of Southeast Asian Nations, wider East Asia and international investment. According to government data, despite Covid-19 restrictions, foreign direct investment in 2021 alone increased by 9.2% year-on-year.
According to data released on December 29, the Vietnamese government reported that the country’s gross domestic product (GDP) increased by 2.58% in 2021, lower than the 2.91% growth rate in 2020. Although the growth is quite good compared to the median of 2.2%, analysts believe that it is higher than the government’s forecast of 2.5%, but it is still at the lowest level in 30 years, showing how hard the Vietnamese economy has been hit by the Covid-19 pandemic. The Hanoi General Statistics Bureau stated that the growth rate in the fourth quarter was 5.22%, but the annual figure is…
According to data released on December 29, the Vietnamese government reported that the country’s gross domestic product (GDP) increased by 2.58% in 2021, lower than the 2.91% growth rate in 2020.
Although the growth compares well with analysts’ median estimate of 2.2% and is higher than the government’s forecast of 2.5%, it is still at the lowest level in 30 years, showing how severe the pandemic the Vietnamese economy has been hit by Covid-19.
The Hanoi General Statistics Bureau stated that the growth rate in the fourth quarter was 5.22%, but the annual figure was dragged down by the 6.02% contraction in the third quarter.
The office said in a statement: “Since the end of April, the complexity of the Covid-19 pandemic has severely affected business and service activities…slow down the growth of the service industry and the economy as a whole,” but it added, “ Given that the pandemic has severely affected all sectors of our economy, economic growth is a good result.”
The “huge impact” of the pandemic blockade
The office pointed out that for at least three months, almost the entire country has been in a state of complete lockdown, which has had a huge impact on production, supply chains, domestic consumption and export-oriented enterprises.
The office said that looking ahead, with the development momentum of travel and tourism, increased domestic demand and government stimulus measures, Vietnam’s economy is expected to accelerate its recovery from the pandemic in 2022, and progress around the spread of the Omicron virus variant is still pending.
Promising prospects in the next few years
Although several problems faced by Vietnam in 2021 may continue until 2022, the government forecasts a GDP growth of 6% to 6.5%, which is in line with its economic plan for 2021-2025, which focuses on the digital economy and high-tech industries. , Urban economic development, strengthening the role of regional interconnection and key economic zones, and adjusting the overall structure of the industry to achieve a green and sustainable economy.
Given its favorable policies for investors, relative economic and political stability, cost-effectiveness, and growing consumer demand from the growing middle class, Vietnam may also continue to be a strong candidate for the Association of Southeast Asian Nations, wider East Asia and international investment. Government data shows that despite the restrictions of Covid-19, foreign direct investment in 2021 alone increased by 9.2% year-on-year.
