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Vietnam economy to increase 6.7 percent in 2021: Standard Chartered

Valerie Mai Valerie Mai

mnghonganh@gmail.com

June 02, 2021 | 10:06

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, Standard Chartered announced on June 1.

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Vietnam economy to increase 6.7 percent in 2021: Standard Chartered
Tim Leelahaphan, an economist for Vietnam and Thailand at Standard Chartered Bank. (Photo: National Thailand)

In its June 1 report entitled “Vietnam - Strong performance continues this year”, the banking and financial services company Standard Chartered 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.

Tim Leelahaphan, the bank’s economist for Vietnam and Thailand, held that Vietnam’s economy remains strong and the country is proving to be one of the world’s best-performing economies amid the Covid-19 pandemic, according to VNA.

“Vietnam’s economic fundamentals remain robust. The country has been one of the world’s best-performing economies during the pandemic; that said, we are closely watching the domestic COVID-19 situation,” said Tim Leelahaphan.

However, he added, like many other countries, Vietnam is feeling the impact of the domestic Covid-19 situation, which is inevitable.

Vietnam economy to increase 6.7 percent in 2021: Standard Chartered
A view of Khai Quang Industrial Park in Vinh Yen city of Vinh Phuc province (Photo: VNA)

Vietnam began its Covid-19 vaccination campaign on March 8, with about 1 million people, mostly frontline health workers, receiving jabs so far. Expanding the campaign is a key condition for reopening tourism and promoting sustainable economic recovery, he 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%.

Other specialists of the British multinational banking and financial services company said that rapid economic growth may boost inflation and rising world food prices are also affecting domestic inflation. They forecast inflation in Vietnam at 3.8% this year, VOV said.

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Valerie Mai