VietNam economic growth prospects brighter in 2022

According to “VOV”, HSBC Bank recently released a report showing that Vietnam's economy had a solid development in early 2022, which was reflected in the statistics in January this year.

HSBC believes that Vietnam's policy of "living with the virus" will help improve domestic consumption. Specifically, compared with a decrease of nearly 4% over the same period in 2021, retail sales in January 2022 increased by 1.3% over the same period last year.

HSBC also believes that Vietnam's main growth driver is the manufacturing sector, which has begun to have a strong recovery as the labor shortage continues to improve. Among them, January exports this year increased by 1.6%.

Additionally, the purchasing managers' index (PMI) rose to its highest level in nearly nine months. Most of the major indexes point to a sustained recovery, with optimistic forecasts that output will return to pre-COVID-19 levels.

Besides the positive signal, HSBC also raised the average inflation forecast for 2022 to 3% from 2.7% previously. However, HSBC believes that inflation is unlikely to be a big problem in Vietnam in 2022, as this figure is still below the 4% inflation target set by the Vietnamese government.