The Bank maintains Vietnam's GDP growth forecast at 6.7% in 2022 as the bounce in economic indicators has become broader.

The report said recovery is likely to be stronger at the end of the second quarter when domestic demand and the tourism sector rebounds. Standard Chartered said FDI inflows into Vietnam have started to increase this year after a decline in 2021 and this trend may continue, particularly in manufacturing, electricity, gas, and air conditioner supplies.

Tim Leelahaphan, economist for Thailand and Vietnam at Standard Chartered said foreign investors remain the key driver of Vietnam's contribution to the global supply chain. Several major global tech companies have shifted production top Vietnam in recent years to diversify their supply chains. Vietnam remains attractive as a regional manufacturing hub for sectors including electronics, textiles, garments, and footwear.

Standard Chartered Bank maintains its inflation forecast for Vietnam at 4.2% for 2022 and 5.5% for 2023. The Bank also maintains a positive assessment of the Vietnamese dong (VND), supported by the balance of payments.