Saturday, November 27, 2021 5:40:40 PM - Markets open
VN-INDEX 1,493.03 -7.78/-0.52%
HNX-INDEX 458.63 -1.04/-0.23%
UPCOM-INDEX 114.34 -0.27/-0.24%
Vietnam’s GDP growth may reach 8 percent in 2022: DBS
VietNamPlus - 10/6/2021 5:00:20 PM
 (0 ratings. You must sign in to rate.)
 Singapore-based financial service supplier DBS has predicted that Vietnam’s economic growth may reach 8 percent in 2022 thanks to rising flows of FDI and exports and digitalisation impetus.
 
In a report released on October 4, DBS economist Chua Han Teng held that for Vietnam, the worst is over and the country’s economy will recover again when it reopens the door thanks to higher vaccination rate and lower number of new infections.
 
According to the report, foreign direct investments (FDI) will remain a key engine of Vietnam’s growth over the coming years. Newly registered FDI remained resilient in the first three quarters of 2021, despite the challenges and difficulties faced by international companies during the virus outbreak since April 2021.
 
It noted that Vietnam has suffered heavily from the pandemic in 2021. Having done well with virus management in 2020, the economy shrank significantly in the third quarter of 2021 by 6.17 percent year on year.
 
It held that the multi-decade decline in the third quarter makes it difficult for growth to recapture last year’s 2.9 percent expansion, much less the government’s official GDP target range of 6-6.5 percent. Therefore, the DBS lowered its 2021 growth forecast to 1.8 percent from 5 percent previously. With demand-pull pressures also muted through 2021, CPI inflation is likely to average lower at 2.1 percent from 3.3 percent previously.
 
“Looking into the fourth quarter of 2021 and 2022, we expect a better outlook, as the economy enters a ‘new normal’, helped by the vaccination roll out. Favourable base effects and structural growth drivers such as FDI and exports, coupled with digitalisation impetus, are likely to propel growth to 8 percent in 2022 (vs 6.8 percent previously)”, it said.
 
“We expect retail and recreation mobility to improve further amid looser curbs and greater adaptation towards ‘living with the virus’. Retail sales and ‘accommodation and food services’, which saw significant double-digit contractions in the third quarter, are therefore likely to concomitantly rebound and recover into 2022,” stated Chua.
 
The report also highlighted Vietnam’s increasing digitalisation in the ‘new normal’ situation.
 
The pandemic has notably accelerated digitalisation and increased technological adoption, which is a constructive trend, it said.
 
The report quoted the Google, Temasek and Bain, e-Conomy SEA 2020 report as saying that increased usage of digital solutions is also reflected in a high share of new digital service consumers in Vietnam, arising from COVID-19 restrictions that prevented visits to physical stores.
 
Chua held that greater attainment of technical and digital skills, and a higher-skilled workforce over the coming years should not only help to increase productivity but also provide a positive feed-back loop to enable Vietnam to move up the manufacturing value chain and further attracting FDI.
 
Last year, the value of the cloud computing market of Vietnam was estimated at over 130 million USD. The figure is forecast to hit 500 million USD in 2025./.
VNA
 
Read original article here
 
Newer News
25/11 PM Chính meets with leaders of Japan's Parliament
24/11 Textile - garment industry may flourish in 2022: insiders
24/11 Vietnam - US trade likely to reach 100 billion USD this year
22/11 2021-2025 economic restructuring plan focuses on digital transformation
22/11 Import-export revenue forecast to hit new record in 2021: MoIT
18/11 Over 450 billion VND for Nhu Nguyet bridge on Hanoi-Bac Giang expressway
15/11 Vietnam's growth and recovery require strong public investment: economists
12/11 Gasoline prices to be adjusted every 10 days in response to global fluctuations
09/11 Domestic demand for gasoline to recover in fourth quarter
03/11 Vietnam calls for investments in 157 projects during 2021-2025
Older News
05/10 Foreign investors remain optimistic about Vietnam’s economy: official
04/10 Vietnam strives for GDP growth of 6.5-7 percent annually during 2021-2025
01/10 Vietnam still sees optimistic economic outlook in 2022: scholar
30/09 Public investment pushes real estate market
29/09 WB: Vietnam’s economy could converge toward pre-pandemic rate from 2022 onward
29/09 Vietnam’s GDP up 1.42 percent in nine months
29/09 Vietnam’s CPI up 1.82 percent in January-September
28/09 PM asks for efforts to complete 95 percent of public investment disbursement plan in 2021
28/09 Foreign investors keep trust in Vietnam’s recovery
28/09 Experts: real estate, consumption finance, construction bright spots in investment
 
Newsletter Signup
Top Stories
Vietnam - US trade likely to reach 100 billion USD this year
Transport ministry allows increase of domestic flight frequency from October 21
VIC: Vinfast & Europe's AUTOBEST enter new strategic partnership
Energy stocks benefit from higher oil prices
Vietnam’s GDP up 1.42 percent in nine months
Market Update
Last updated at 3:01:56 PM
VN-INDEX 1,493.03 -7.78/-0.52%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.