Vietnam’s economy is growing steadily in agriculture, industry, and services, and inflation is steady at 2.73%.
|Prime Minister Pham Minh Chinh speaks at a meeting between the government and localities (Photo: VNA)
Impressive growth reported in many localities
HCM City and Hanoi, Vietnam’s two economic powerhouses have reported two-digit growth in the last nine months.
Other localities have also recorded impressive GRDP growth. Bac Ninh grew 9.7%, Hai Duong 10.14%, Quang Ninh 10.12%, Hai Phong 12.06%, Can Tho 17.57%, and Da Nang 16.76%. Khanh Hoa province grew 20.48% and Bac Giang 23.98%.
At an online meeting between the government and 63 cities and provinces and at the regular government meeting for September, leaders of HCM City, Hanoi, and Khanh Hoa province highlighted the localities’ impressive growth.
"Ho Chi Minh city grew 30.02% in the third quarter of this year, and 9.97% in the last nine months. The city’s recovery and growth is due to the coordinated policies of the Party Central Committee, coordinated measures by the government, and the city’s dynamism and creativity,' said a leader of HCM city.
A leader of Hanoi said: "Hanoi’s GDP in the third quarter of this year was 15.71% and in the last nine months was 9.69%. Its service sector grew 11.51% and its construction industry 7.83%."
"In the last nine months, Khanh Hoa province’s socio-economy has flourished and maintained its growth pace. Economic indexes are up from last year. The province’s GDP grew 20.48% and the indexes of industrial production, services, retail and tourism have surpassed the plan by 103%.' according to a leader of Khanh Hoa province.
Vietnam is forecast to be among the countries with the highest growth in the region
Following the release of the report on socio-economic development in the last nine months, the Ministry of Planning and Investment has adjusted its economic development scenarios and forecast for 2022.
The Ministry expects Vietnam’s GDP to grow 8% this year, 1.5-2 percentage points higher than the target of 6-6.5% set by the NA and the government. This will create momentum for economic growth in 2023.
Many organizations have expressed optimism about Vietnam’s economy. Vietnam is forecast to be among the countries with the highest growth in Southeast Asia in 2022 and 2023, with Moody‘s, the World Bank and the Asian Development Bank forecasting that Vietnam’s GDP in 2022 will grow 8.5%, 7.2%, and 6.5% respectively.
|Prime Minister Pham Minh Chinh received Era Dabla-Norris, head of the IMF's Article IV Consultation of the Department of Asia-Pacific (Photo: qdnd.vn)
At a meeting with Prime Minister Pham Minh Chinh on Tuesday, Era Dabla-Norris, head of the IMF's Article IV Consultation of the Department of Asia-Pacific, said the IMF predicts Vietnam’s 2022 GDP growth will be 7-7.5% and its inflation will be lower than 4%, while production and business activities are bouncing back strongly.
The fund hasn’t seen this in other economies, she said, noting that there is reason to believe the economic panorama is generally positive despite external shocks. If solutions are properly implemented, Vietnam will be able to weather a difficult 2023 and head toward a more positive 2024.
This week S&P Global, one of the world’s most prestigious rating agencies, released its Vietnam Manufacturing Purchasing Managers’ Index (PMI). The report highlights Vietnam’s growing productivity, decreasing inflation pressure, and increasing inventory of goods. Andrew Harker, economics director at S&P Global Market Intelligence, said " business confidence remains strong, so the prospects for the final three months of the year appear positive overall.”