Vietnam's economic growth is expected to accelerate to 5.5

Vietnam's economic growth is expected to accelerate to 5.5% in 2022 and greening its trade would offer new opportunities: World Bank. WhoWeAre News Thispagein: EN dropdown TiếngViệt Thispagein:_ English TiếngViệt dropdown PRESSRELEASE January13,2022 Vietnam’seconomicgrowthisexpectedtoaccelerateto5.5%in2022andgreeningitstradewouldoffernewopportunities:WorldBank Email Print Tweet Share Share LinkedIn Digg 人人网 StumbleUpon Delicious 新浪微博 HANOI,January13,2022—Vietnam’seconomicrecoveryislikelytoacceleratein2022asGDPgrowthisexpectedtoriseto5.5%from2.6%intheyearjustended,theWorldBank’seconomicupdateforVietnamTakingStocksays.AssumingtheCOVID-19pandemicwillbebroughtundercontrolathomeandabroad,theforecastenvisionsthatVietnam’sservicessectorwillgraduallyrecoverasconsumerandinvestorconfidencefirms,whilethemanufacturingsectorbenefitsfromsteadydemandfromtheUnitedStates,theEuropeanUnion,andChina.Thefiscaldeficitanddebtareexpectedtoremainsustainable,withthedebt-to-GDPratioprojectedat58.8percent,wellbelowthestatutorylimit.Theoutlook,however,issubjecttoseriousdownsiderisks,particularlytheunknowncourseofthepandemic.Outbreaksofnewvariantsmaypromptrenewedsocialdistancingmeasures,dampeningeconomicactivity.Weaker-than-expecteddomesticdemandinVietnamcouldweighontherecovery.Inaddition,manytradingpartnersarefacingdwindlingfiscalandmonetaryspace,potentiallyrestrictingtheirabilitytofurthersupporttheireconomiesifthecrisispersists,whichinturncouldslowtheglobalrecoveryandweakendemandforVietnameseexports.Carefulpolicyresponsescouldmitigatetheserisks.Fiscalpolicymeasures,includingtemporaryreductionofVATratesandmorespendingonhealthandeducation,couldsupportaggregatedomesticdemand.Supportforaffectedbusinessesandcitizenscouldbemoresubstantialandmorenarrowlytargeted.Socialprotectionprogramscouldbemorecarefullytargetedandefficientlyimplementedtoaddressthesevereandunevensocialconsequencesofthecrisis.Heightenedrisksinthefinancialsectorshouldbecloselymonitoredandaddressedproactively.Entitled“NOTIMETOWASTE:TheChallengesandOpportunitiesofCleanerTradeforVietnam,”thiseditionofTakingStockarguesthatgreeningthetradesectorshouldbeapriority.Trade,whileanimportantdriverofVietnam’sremarkableeconomicgrowthoverthepasttwodecades,iscarbon-intensive—accountingforone-thirdofthecountry’stotalgreenhousegasemissions—andpolluting.WhileVietnamhasstartedtodecarbonizeactivityassociatedwithtrade,moreneedstobedonetorespondtomountingpressuresfrommaindestinationmarkets,customers,andmultinationalcompaniesforgreenerproductsandservices.“TradewillbekeycomponentofVietnam’sclimateactionsintheyearstocome,”saidCarolynTurk,WorldBankCountryDirectorforVietnam.“PromotinggreenertradewillnotonlyhelpVietnamfollowthroughonitspledgetoreachnetzeroemissionin2050butwillalsohelpitkeepitscompetitiveedgeininternationalmarketsandensuretraderemainsacriticalincomeandjobgenerator.”ThereportrecommendstheGovernmentactonthreefronts:facilitatethetradeofgreengoodsandservices,incentivizegreenforeigndirectinvestment,anddevelopmoreresilientandcarbon-freeindustrialzones.TakingStockistheWorldBank’sbi-annualeconomicreportonVietnam. PRESSRELEASENO: 2022/052/EAP Contacts Hanoi LeThiQuynhAnh (+84-24)3937-8362 [email protected] RELATED WORLDBANK VISITTHEPUBLICATIONPAGEDOWNLOADTHEREPORT Api Api