Due to the pandemic, the communist country has seen historically weak growth of around 3% for two years, but 2022 has marked a strong rebound thanks to strong exports and retail sales, according to authorities.
Before the pandemic, Vietnam topped the fastest growing Asian economies, recording 7% growth in 2019.
This year, that level has surpassed 8%, according to the official statistics office, surpassing the government’s target of 6-6.5 percent.
“The economy has recovered” from the Covid-19 pandemic, the state body announced.
However, the trend slowed down in the last quarter of the year with growth of 5.9% in the period from October to December compared to 2021.
exports drop
Global inflation, as well as the effects of the war in Ukraine, also had a negative impact on exports, with a year-on-year drop of 6.1% due to a lack of orders abroad, the statistics office said.
Earlier this month, the Asian Development Bank projected 7.5% growth for Vietnam’s economy in 2022, while warning of weakening global demand for its exports.
According to the lender, growth will slow in Vietnam to 6.3% in 2023.
The sharp rise in the cost of living in Europe and the United States, the main markets for Vietnamese products, has reduced the purchasing power of Western consumers.
According to the Vietnam Labor Confederation, almost half a million workers have seen their working hours reduced in the last four months of this year, while some 40,000 people have lost their jobs.
Source: BFM TV
