World Bank upbeat about Vietnam’s continued economic recovery

Vietnam’s economic recovery has continued, despite heightened economic uncertainties regarding rising global inflation and weakening growth in its main trading partners, according to the World Bank.
A manufacturing facility of Son Ha Group. (Photo: Duy Dang)
A manufacturing facility of Son Ha Group. (Photo: Duy Dang)

In its latest report on the Vietnamese economy, the World Bank noted that industrial production and retail sales posted another month of high growth rates in August, at 15.6% and 50.2% respectively.

Exports and imports for August grew by 22.6% and 13.3% year on year, respectively, higher than in July 2022.

FDI commitments fell, reflecting investor caution in the face of global uncertainty, while disbursement continued to improve, contributing to an eleven-month positive trend.

CPI inflation moderated from 3.1% in July to 2.9% in August thanks to lower fuel prices, while core inflation continued to accelerate from 2.6% in July to 3.1% in August as the second-round effects of earlier increases in commodity prices affected production costs and final prices.

The World Bank suggested that Vietnamese authorities should remain vigilant about inflation risks associated with food and core prices, adding that while fuel prices have recently softened, global fuel price movements are uncertain.

Thus, incentivising alternative energy production and use would reduce the economy’s dependence on imported fuels and promote greener growth.

The World Bank also called for strengthening the social support system, which will facilitate reaching affected citizens during such shocks.