Vietnam's economic recovery to accelerate remarkably in H2: Standard Chartered

HANOI, 29th August, 2022 (WAM) -- Vietnam’s economic recovery will be stronger in the second half of 2022, particularly as the country resumed its tourism activities after a two-year closure, according to Standard Chartered’s latest Vietnam report.

According to the Vietnam News Agency (VNA), the report said the Vietnamese economy will continue recovering in August as the recovery has shown signs of broadening.

The bank maintained its forecast for Vietnam’s GDP growth at 10.8% and 3.9% in the third and fourth quarters of this year, respectively, taking the full-year growth to 6.7%.

Tim Leelahaphan, Standard Chartered Economist for Thailand and Vietnam, anticipated that the recovery will accelerate remarkably. However, he also warned that high global oil prices may negatively impact the Vietnamese economy.

Retail sales are estimated to grow strongly, at 60.2% in August, from 42.6% in the previous month, the report added.

Experts from HSBC have also predicted that despite a less rosy external picture, Vietnam’s economy continued to gain traction.

Textile, garment and footwear exports rose by 30% from a year earlier. Retail sales posted a record growth rate of over 55% last month compared to the same period last year. In particular, the revenue of tourism-related sectors was considerable, witnessing a double-digit expansion for four straight months.

Also in July, Vietnam attracted more than 350,000 foreign tourist arrivals, tripling the monthly average in H1, and bringing total visitors to the country so far to over 1 million. Those from the Republic of Korea, Europe and the US accounted for nearly half of the total figure.