High growth prospect predicted in Vietnam in SE Asia: ICAEW

26 Jun '22

2 min read

Pic: Shutterstock

Vietnam is predicted with a high growth prospect in the Southeast Asian region, at more than 6.5 per cent in 2022—0.7 per cent higher than the average growth of 5.8 per cent for the whole region, according to the Economic Forecast presented by experts at the Institute of Chartered Accountants in England and Wales (ICAEW) Economic Insight Forum Q2.

Vietnam was able to bounce back relatively quickly in 2021 compared to the rest of the region. With the easing of restrictions from last year’s fourth quarter (Q1) that carried over to this year’s Q1, there has been a significant recovery in its services sector driven by domestic tourism.

Foreign direct investment (FDI) inflow this year should also support construction performance and labour and achieve export capacity, which remains healthy, according to Vietnamese media reports.

The ICAEW report said that even though recovery across the region had been uneven with the Delta COVID variant, gross domestic product (GDP) for Singapore, Indonesia, Malaysia, the Philippines and Vietnam has risen back to pre-pandemic levels–except for Thailand, which is still at 2 per cent below pre-pandemic levels.

Vietnam was not particularly affected by the Delta variant wave, and therefore, did not experience large lockdowns that affected its economy as much as Malaysia and the Philippines did.

Fibre2Fashion News Desk (DS)

More Textiles News - Vietnam...