Viet Nam’s Economy Slows to 2.58% Growth in 2021

9:06:22 AM | 12/30/2021

Vietnamese economy slowed to 2.58 percent growth in 2021 from 2.91 percent of the previous year, according to the General Statistics Office.

In the last quarter, the economy expanded 5.22 percent thanks to the Government’s decision to switch away from “Zero COVID-19” policy to safe and flexible adaptation to the pandemic.

The economy grew by 4.72 percent and 6.73 percent in January-March and April-June periods before shrinking by 6.02 percent in the third quarter.

According to General Director of HSBC Viet Nam Tim Evans, after a few months of experiencing difficulties due to strict distancing measures, the economic situation is becoming more and more stable.

Business activity has been bustling again in the past few months and consumer confidence is gradually returning despite many obstacles as workers have not returned to factories. Viet Nam's supply chain has been impacted by widespread labor shortages, especially in labor-intensive sectors.

In particular, the PMI, which reflects the confidence level of manufacturers, rose to 52.2 in November. This shows that business conditions have improved for the second consecutive month after a period of decline due to the fourth outbreak starting in April.

Viet Nam's economy can regain GDP growth rate at 6.8 percent in 2022 mainly thanks to strong FDI inflows to the manufacturing sector, thereby promoting exports, especially in the context that the free trade agreements Viet Nam has signed in the past two years are starting to “bear fruit."

Specifically, Viet Nam receives the highest value of investment in renewable energy in the ASEAN region and has the most potential for renewable energy development with growth driven by foreign investment, emphasized General Director of HSBC Viet Nam.