Vietnam’s GDP growth is expected to rebound to 7 % in 2021, driven by a recovery in goods and service export, resilient domestic economy, and healthy investment inflows, according to the ASEAN 3 Macroeconomic Research Office (AMRO).
In its Annual Consultation Report on Vietnam published on May 19, which was produced based on AMRO’s virtual 2020 Annual Consultation Visit to Vietnam and data and information available up to February 11, 2021, the office said Vietnam’s manufacturing output continued to expand thanks to robust exports and positive spillover from global supply chain restructuring.
The economic recovery is expected to continue on the back of an increase in domestic consumption following the relaxation of mobility restrictions, and an acceleration in public investment disbursement, it noted.
The report said continued policy support of the Government remains essential to bolster national economic recovery.
Effective food supply chain management and stable fuel prices will help the Vietnamese government keep inflation below 4 % in 2021, the report stressed.
Vietnam needs to step up its efforts to develop domestic supporting industries in order to strengthen its participation and increase its value-add in the global value chains.
The ASEAN 3 Macroeconomic Research Office (AMRO) is an international organisation established to contribute towards securing macroeconomic and financial stability of the ASEAN 3 region, comprising 10 ASEAN member nations, China, Hong Kong (China), Japan and the Republic of Korea.
The Annual Consultation Report was prepared in fulfillment of AMRO’s mandate. The organisation is committed to monitoring, analysing and reporting to its members on their macroeconomic status and financial soundness.