After a strong GDP growth of 7.1 per cent in 2024, Vietnam's economic expansion is expected to moderate to 6.6 per cent in 2025 and further ease to 6.5 per cent in 2026.
The typhoon's impact is expected to be felt more clearly in the northern regions towards the end of the third quarter and the start of fourth quarter, leading to reduced output and damage to manufacturing, agriculture, and service facilities.
With no sudden changes and favorable conditions for the economy externally, the Ministry of Planning and Investment (MPI) has forecast that GDP growth will reach 8 per cent in 2022 and 6.5 per cent in 2023.
With the potential to develop into a trading and manufacturing hub of the world, Vietnam continues to attract foreign investors, analysts have said. Factors that make Vietnam attractive to foreign investors include strong GDP growth, of 7 per cent a year for two decades prior to Covid-19 and forecast at 7.5 per cent in 2022, and a young workforce fluent in English and possessing other skills.
Optimistic about Vietnam’s economy recovering strongly after Covid-19, primarily due to greater exports and the recent return of foreign tourists, the World Bank (WB) has forecast that GDP could grow 7.2 per cent this year. It also forecasts that inflation will come in at 3.8 per cent this year and 4 per cent next.
GDP growth reached only 2.58 per cent in 2021, with the agriculture, forestry, and fisheries sector and the industry and construction sector being pillars of the economy, growing 2.9 per cent and 4.05 per cent, respectively. Medical and social aid, banking, finance and insurance, and information and communication also saw relatively good growth.
Covid-19 has created huge economic losses for Vietnam, estimated at $24 billion, or 7 per cent of GDP. The damage to Ho Chi Minh City’s economy has been put at about $12 billion.