Vietnam’s economy to rebound in Quarter 4: Mirae Asset
VOV.VN - The Mirae Asset Financial Group of the Republic of Korea has forecast the Vietnamese economy is likely to expand 4% in the fourth quarter of 2021 and 2.3% for the whole year after suffering a contraction of 6.17% in the third quarter due to the impact of the COVID-19 pandemic.
Mirae Asset experts say Vietnam would achieve the growth driven by public investment disbursement and FDI attraction when the government gradually reopens its economy in the three remaining months of the year.
In a recently issued report, Mirae Asset states despite a sharp decline in the previous three quarters, public investment will serve as the driving force behind economic recovery in the last quarter of the year when Vietnam switches from a strategy of ‘Zero COVID-19’ to a model of ‘living safely with the pandemic’ .
Indeed, the government is gradually easing social distancing measures and partially opening the economy in localities, along with speeding up COVID-19 vaccinations and implementing solutions to support growth.
Meanwhile, despite the COVID-19 impact nine-month FDI inflows into Vietnam continued to maintain double-digit growth, which shows foreign investors have still placed their trust in the country’s business climate.
Data from the General Statistics Office show the opening nine months of 2021 saw Vietnam attract US$22.15 billion worth of FDI, up 4.4% from a year earlier. Of the total, the newly registered capital was US$12.5 billion, up 20.6% year on year, and the adjusted capital was US$6.4 billion, up 25.6% year on year.
In 2022, when the vaccination rate is expected to reach over 70%, and Vietnam gets used to the model of living safely with COVID-19, Mirae Asset experts believe that its economy will expand 5.7% in the base scenario and 6.2% in the positive scenario.
