Vietnamese economy to expand 6.7% in 2021: Standard Chartered

Tuesday, 2021-06-01 15:28:14
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Exports of phones and components (accounting for about 16% of total export revenue) are expected to post high growth in May. (Illustrative image)
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NDO – Vietnam’s GDP growth rate is projected to reach 6.7% in 2021 and climb to 7.3% in 2022, one of the best performers in the world amidst the COVID-19 pandemic, according to Standard Chartered.

In its recent report entitled “Vietnam - Strong performance continues this year”, the banking and financial services company said Vietnam's economic fundamentals continue to remain strong and the country has consistently been one of the world's best performing economies during the pandemic.

However, Standard Chartered is still closely monitoring the impacts of the ongoing COVID-19 pandemic in Vietnam, the company said.

According to the report, exports – one of the main driving forces of Vietnam’s economic growth – continue to maintain positive growth. For example, exports of phones and components (accounting for about 16% of total export revenue) and electronic products, computers and components (accounting for about 15% of export revenue) are expected to post high growth in May. Vietnam also enjoyed US$1.3 billion worth of trade surplus in the first four months of this year.

The company also added that rapid economic growth will probably increase inflation while rising prices in food and commodities across the world market are also affecting domestic inflation. Vietnam’s average inflation in 2021 is forecast to reach 3.8%.

Standard Chartered added that Vietnam’s vaccination campaign, beginning from March 2021 with over 1.1 million people inoculated so far, is an important condition for the reopening of tourism and the sustainable recovery of the domestic economy.

Previously in January 2021, Standard Chartered forecast that the Vietnamese economy would attain a high growth rate of 7.8% in 2021, higher than the figure in the recent report.