From 1997 to 2021, the GDP of the country was tremendously low. However, in 2022, the growth quickens to 8.02%. It represents Vietnam’s tough fight in the economic market and its stand in domestic retail sales and exports. Although, the reports say that a headwind from a global slowdown could soon hit Vietnam’s economy.
The GDP is respectively higher than the estimated numbers. The officials set growth targets from 6.0% – 6.5%. In contrast, the reading from the last year was just 2.58% due to the Covid-19 impact on manufacturers and factories.
Countries like Vietnam are always frightened about global recession, but they have proved to stand firm this time. As the GDP has increased, the demand for exports in textiles, footwear, and electronics has been enhanced because of their branding in the international market.
In addition, the industrial and construction sector in 2022 grew by 7.78%, whereas the service sector expanded by 9.99% and the agricultural industry read 3.36%.
Furthermore, the exports in 2022 went up by 10.6% to $371.85 billion, while retail rose by 19.8%. The general statistics office (GSO) has presented a statement, ‘the economic performance is worth nothing amid global economic and political uncertainty and challenges.’ The above numbers mentioned by the GSO included the consumer price in December, which rose 4.55% from a year earlier.
The growth is appreciated, but the economy always runs in deficit because of external factors. For Vietnam, the headwind will soon arrive; an expert says that the global impact on the shipment has shown weakened performances already. Therefore, Vietnam needs to be careful in the future and back up a contingency plan to avoid the headwind.
‘The slowdown in global economic growth is making it more difficult for Vietnam to boost its exports and attract more foreign investment next year,’ said Can Van Luc, an advisor to the government and an economist at the bank for Investment and Development of Vietnam.
Luc added that the upward inflation fear is also building up; hence, an increase in the money supply will be noted by the end of 2022. Adding that ‘Vietnam has to import a lot of goods whose prices are still high, thus also pushing up pressure for higher inflation.’
Vietnam needs to balance its imports and exports because the imports were down 8.1% to $29.16 billion, and exports in December went down by 14%, which is $29.66%. The decline in imports will result in future contractions. As a result, the industries may cut their purchase of materials and equipment for production.
The GDP growth reached 5.92%; in the third quarter, it was 13.71%, and the revised value for the same quarter was 13.67%, GSO stated. According to the government, the Foregin Direct Investment of Vietnam rose 13.5% this year to $ 22.4 billion. It is one of the vital economic drivers. As per reports, Vietnam set its goal for the next year; while its targeted GDP growth is 6.5%, and inflation is at 4.5%.
- Published By Team Genuine Reporter