The World Bank has forecast Vietnam to be among the fastest-growing economies in the Asia and Pacific region. The World Bank forecasts Vietnam’s growth of 6.6 percent in 2021.
The growth will be based on strong export performance and the recovery of the manufacturing and services sectors. This news comes from the World Bank’s latest report on the Asia Pacific economy called “Uneven Recovery”, released Friday.
According to the report, the Covid-19 pandemic had the most negligible effect on Vietnam and China. The report also states that both nations mitigated the pandemic through effective containment measures.
According to the report, China’s economy may grow 8.1 percent this year. The same report states that the rest of the Asia and Pacific region will increase by an average of only 4.4 percent.
The report also states that countries heavily dependent on export and tourism will experience delays in economic recovery.
Vietnam Growth Optimistic
Apart from the World Bank, several other organisations have shown optimistic views on Vietnam’s growth in 2021.
Firstly, Standard Chartered Bank has forecast Vietnam to grow at 7.8 percent this year. Standard Chartered believe that the Vietnamese manufacturing industry will drive the revival.
Secondly, the Asian Development Bank has forecast a 6.1 percent growth for Vietnam in 2021.
Thirdly, the IMF expects Vietnam’s economy to grow by 6.5 percent. Finally, HSBC predicts Vietnam’s 2021 economic growth at 7.6 percent.
Above all, Vietnam has outperformed its neighbours in South-East Asia.
According to the World Bank report, lingering infections in other countries will be a drag on growth. The report warns that sluggish economic growth would go on until the wider implementation of vaccines.
“The economies of the region have begun to bounce back, but we have what we call a three-speed recovery,” World Bank chief economist for East Asia and the Pacific Aaditya Mattoo told The Straits Times.
Inequalities between and within countries is a big risk, Dr Mattoo warned.