Investment News

Vietnam's economy firmly overcomes challenges


Experts say that thanks to flexible management policies, Vietnam's economy can firmly overcome challenges.

An economy with a large openness like Vietnam is under pressure from the risk of global supply chain disruption and high world inflation. However, many press and international organizations still positively assess the stability and recovery of Vietnam's economy.

Many major news agencies such as Reuters, Bloomberg, and Nikkei Asia simultaneously reported on Vietnam's decision to reduce the environmental protection tax on gasoline, oil and grease to the floor level. The articles all said that this is a timely solution to control inflation in the context that gasoline prices in Vietnam are increasing due to fluctuations in the world market.

For its part, the International Monetary Fund (IMF) highly appreciates that the Vietnamese authorities have applied policies to reduce the impact of the pandemic. Vietnam has launched an impressive vaccination campaign. The government has successfully maintained budget stability, international debt repayment capacity and financial stability. The IMF and many other major financial institutions have made optimistic forecasts for Vietnam's economy in the second half of this year and the whole of next year.

"Economic recovery has shown signs of expansion since the second quarter of this year. Economic indicators continued to recover well in June. The recovery may accelerate markedly by the end of the year, especially when the industry recovers. tourism has reopened after 2 years. We believe that the positive outlook of Vietnam's economy in the medium term will still be maintained", said Ms. Michele Wee - General Director of Standard Chartered Bank Vietnam.

Experts from the ASEAN+3 Macroeconomic Research Office (AMRO for short) forecast Vietnam's GDP growth this year at 6.3%, ranking second in Southeast Asia, just behind the Philippines.

According to experts, Vietnam has solid premise to overcome the current global fluctuations. It's a stable political situation, a consistent government in action, a stable local currency, record-high foreign exchange reserves, and inflation under control.