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World Bank maintains Vietnam’s growth at 4.8 pct

By Dat Nguyen   September 28, 2021 | 04:30 am PT
World Bank maintains Vietnam’s growth at 4.8 pct
A medical staff vaccinates a woman in Hanoi, Sept. 10, 2021. Photo by VnExpress/Ngoc Thanh
World Bank maintained its GDP growth forecast for Vietnam at 4.8 percent this year, expecting the economy to rebound in the last quarter from months of pandemic-triggered hardship.

A sustained global recovery would ensure strong demand for Vietnamese products in its main export markets: the U.S., E.U., and China, it said in a report released Tuesday, after making the same growth forecast a month ago.

The forecast assumes restrictive mobility measures would succeed in controlling infections by the end of this quarter.

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.

Fiscal policy would become more supportive with faster execution of public investment, especially once mobility restrictions are rolled back.

Given available fiscal space, the government should deploy further resources to mitigate adverse social impacts.

The government should improve the implementation of its cash relief programs to reach more households, informal workers, and those unregistered in existing social assistance registries who have been affected.

World Bank forecasts a 6.5 percent growth for the country next year.

This projection is subject to downside risks, including a more protracted outbreak, causing prolonged disruptions to economic activity.

Asian Development Bank had recently pegged Vietnam’s growth at 3.8 percent this year.

The country targets a growth of 3.5-4 percent, after rising 2.9 percent last year.

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