World Bank projects Viet Nam’s growth at 6.5-7% next year
VGP – The World Bank (WB) maintained its GDP growth forecast for Viet Nam at 4.8 percent for this year and projected the rate at 6.5-7 percent for next year.
The forecast assumes restrictive mobility measures would succeed in controlling infections by the end of this quarter, according to a report of the international lender which was issued on September 28.
The rebound would also be supported by the vaccination of at least 70 percent of the adult population by mid-2022, preventing severe new outbreaks.
Aside from the second social protection support package, the government is considering tax relief to support businesses.
Earlier, in the edition of Taking Stock – the World Bank’s biannual update on Viet Nam’s economic performance, titled “Digital Viet Nam - The Path to Tomorrow,” the bank assessed that despite economic challenges in Q3, there was an increase in FDI commitments in August, which really signals that it is a sign that international investors are still interested in doing business in Viet Nam.
Over the first eight months of 2021, FDI commitment reached a total of US$ 14 billion, only two percent lower than the same period in 2020 while the disbursed investment reached US$11.7 billion, up 2 percent on year, said Dorsati Madani, Senior Economist at the World Bank Viet Nam.
Previously, the Asian Development Bank (ADB) projected that the Southeast Asian country’s economy is expected to grow 3.8% this year and 6.5% in 2022.
ADB forecast that the Vietnamese economy will bounce back if the COVID-19 pandemic is brought under control by the end of 2021 and 70% of the country’s population are vaccinated by the second quarter of 2022. ADB was upbeat about Viet Nam’s prospects in the medium and long term./.
By Kim Loan
