Vietnam reported economic growth of 8.02% in 2022, beating the official estimates of 6-6.5% and surpassing by significant margin the last year’s 2.56 percent annual growth rate.
Robost economic recovery from the pandemic explains the highest growth recorded during the 2011-2022 period, according to Xinhua.
The readings insinuated the resilience of the economy. Vietnam mitigated the global economic headwinds such as that recession, and inflation, which could have dented the demand for exports of goods like textiles, footwear, and electronics that it manufactures for big international brands.
“The economic performance is worth noting amid global economic and political uncertainty and challenges,” the General Statistics Office (GSO) said in a report.
Vietnam’s industrial and construction sector expanded by 7.78% in 2022, while the services sector saw an expansion of 9.99% and agriculture, forestry and fishery sector inched up 3.36%.
Exports in 2022 shot up 10.6% to $371.85 billion, while retail sales increased 19.8%, as per GSO data. Consumer prices in December increased 4.55% year-on-year.
Economy Showing Deceleration Signs:
The country might have seen a staggering growth rate, but the last month of 2022 alerted economic deceleration signs.
Exports fell 14% YoY to $29.66 billion in 2022, while imports reduced by 8.1% to $29.16 billion. A fall in imports suggests a future contraction in industrial production as firms look for cost-cutting in materials and equipment for production.
In the last quarter, the Vietnam’s economy grew 5.92 percent year-on-year, higher than the same period in the previous two consecutive years but below that of the 2011-2019 period.
GDP growth in the third quarter was revised up to 13.71%, the GSO said, from 13.67%.
Foreign direct investment (FDI) pledges, an indicator of future inflow prospects, dipped 11% in the year to $27.72 billion, though FDI rose 13.5% to $22.4 billion.
GDP Outlook:
British multinational investment bank HSBC recently revised the GDP forecast from 7.6 percent to 8.1 percent this year but downgraded next year’s estimates to 5.8 percent from 6 percent earlier.
Vietnam would push harder to achieve the GDP growth target of 6.5 percent next year, according to a resolution on the socio-economic development plan for 2023 approved by its top legislature.