International organizations upbeat about Viet Nam’s economic prospects

Update: 15:21 | 02/11/2020
Viet Nam was forecast to gain an average growth rate of 1.8-2.8% in 2020, according to updated reports of international organizations.
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International organizations upbeat about Viet Nam’s economic prospects

The International Monetary Fund (IMF) revised down its forecast for Viet Nam’s GDP growth to 1.6% in 2020 from a previous estimate of 2.7% in June. Viet Nam, however, remains the only country among major economies in ASEAN-5 (Thailand, Malaysia, Indonesia, the Philippines, and Vietnam) expected to deliver positive growth this year.

The Asian Development Bank (ADB) said that Viet Nam’s economy could grow 1.8% this year, showcasing its resilience despite deleterious impacts of the Covid-19 pandemic. The lender attributed the positive growth to the government’s success in containing the pandemic.

The Asian Development Outlook (ADO) 2020 Update said that Viet Nam will benefit from the continued diversion of production from China and the implementation of a free trade agreement with the E.U., which came into effect on August 1.

In its October country report, the World Bank (WB) said the third quarter rebound would help Viet Nam meet its GDP growth target of 2.5-3% this year. The WB also forecast a GDP growth of 2.8% for Viet Nam this year, making it one of only two countries in ASEAN to record positive growth.

The ASEAN Post forecast that overall Viet Nam's growth in 2020 is expected to be around 2.9%. As the current Chair of the Association of Southeast Asian Nations (ASEAN) for 2020, Viet Nam has been actively involved with the association since 1995 when it joined the bloc with the aim of bringing all Southeast Asian countries together to promote regional peace, freedom, and prosperity.

Standard Chartered expects Viet Nam’s economy to grow by 3% in 2020 and surge to 7.8% in 2021, according to Global Research report entitled “Viet Nam – Q3 disruption, but recovery remains intact”. Viet Nam is one of the few Asian economies to have registered positive growth so far this year, despite the second wave of infections.

According to the latest macroeconomic report on Viet Nam, a likely improvement in external demand in the fourth quarter should support manufacturing growth, forecast at roughly 7.3% in full-year 2020.

Viet Nam’s economy is set to rebound strongly by 8.1% in 2021, HSBC has said in a latest report titled "Asia Economics: It’s about stamina." HSBC also revised down its GDP growth forecast for Viet Nam from 3% to 2.6% in 2020, accounting for the negative impact of the second wave.

S&P Global Ratings forecast Viet Nam would likely be the second fast-growing economy in Asia-Pacific this year, only behind China, as the Southeast Asian country has emerged as a bright star in containing the COVID-19 pandemic.

S&P Global Ratings revised up Viet Nam’s GDP growth to 1.9% this year from 1.2% previously. Overall, Viet Nam is expected to be one of the leaders of the post-COVID-19 recovery, able to close its output gap by 2022. Its 2021 growth is forecast at 11.2%, the highest in the Asia-Pacific region.

Investment bank Goldman Sachs forecast Viet Nam’s GDP to grow by 2.7% this year and 8.1% next year, driven by exports./.

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(Source: VGP)