Vietnamese economy predicted to maintain 6.7% growth this year
VOV.VN - United Overseas Bank (UOB) of Singapore has maintained its forecast that the Vietnamese economy will expand by 6.7% over the course of the year 2021.
The bank recently released a report detailing economic growth during the second quarter, noting the country’s economic growth trajectory has remained on track.
Vietnam’s fourth outbreak of COVID-19, which initially started on April 27, has resulted in movement restrictions and lockdowns which have caused great disruption for a range of business and manufacturing operations, it said.
UOB said it believes that the recent COVID-19 outbreaks, coupled with the discovery of new variants, certainly pose a downside risk to the economy, particularly as vaccination rates are low compared to neighbouring countries.
Most notably, the second quarter of the year has seen GDP growth stay strong, hitting 6.6%.
Furthermore, exports continued to record growth, whilst foreign direct investment (FDI) inflows remain upbeat this year, a reflection of investor confidence and Vietnamese relevance within the global supply chain.
Moving forward, UOB forecast that Vietnamese GDP growth will likely reach 6.7% this year, higher than the 6% target set by the National Assembly.
