An earlier estimate put Vietnam’s economic growth at 6.5% but the forecast has been revised due to the difficulties Vietnam is facing as the country copes with a surge in COVID-19 cases from the Omicron variant.
In addition, Vietnam is severely affected by rising oil prices as its imports accounted for up to 3% of GDP, the World Bank said on April 5.
Although Vietnam is regarded as one of the countries able to take the most advantage of opportunities to expand international trade, this has also made Vietnam more vulnerable to external shocks.
That means Vietnam needs to be more successful in building and perfecting its social security system.
According to the WB’s East Asia and Pacific Chief Economist Aaditya Mattoo, Vietnam has been a successful model in attracting foreign direct investment for several years, helping the country to fulfil its growth targets and reduce the poverty rate.
In its report, the WB also cut its 2022 growth forecast for East Asia and the Pacific to 5%, down 0.4 percentage point from a projection made in October last year.
