Vietnam Holding Limited (VNH), a London Exchange-listed fund, has assessed Vietnam’s economy as possessing solid inner strength that will be a driving force for development despite the global economy turbulence.

VNH said the country has become an increasingly important link in global supply chains. With GDP in 2022 expected to be 6.5 per cent, its economy will return to its 30-year growth trajectory as domestic demand recovers and exports remain strong.

In a report for April, VNH said it is investing in companies in Vietnam with high growth, focusing on domestic consumption, industrialization, and urbanization.

During April, the global stock market went through turbulence due to the Ukraine-Russia conflict, global inflation, and disruptions to supply chains. Vietnam’s stock market also suffered heavy losses, with the VN-Index plummeting 8.9 per cent to its lowest rate since March 2020.

In terms of macroeconomics, VNH assessed that, although there are many global risks, including war, inflation, and supply chain disruptions, Vietnam remains resilient. Tourism activities have been vibrant since the Covid-19 pandemic was brought under control. The International Monetary Fund (IMF) also recently forecast growth in 2022 of around 6 per cent.

According to VNH, Vietnam is a highly open economy with nearly $340 billion in goods and services shipped to the world in 2021. In the first quarter of 2022, export turnover was estimated at $88.58 billion, up nearly 14 per cent year-on-year. It is an increasingly important link in global supply chains and logistics is essential in serving businesses in the rapidly-growing economy.