ADB raises Vietnam's GDP growth to 2.3% in 2020

ABO/NDO – The Asian Development Bank has adjusted itsforecast for Vietnam’s economic growth from 1.8% to 2.3% in 2020 thanks to the promotion of public investment, the recovery of domestic consumption, the increase in trade exchanges and the rapid recovery of neighbouring countries.
The growth forecast was made in a regular supplement to the Asian Development Outlook (ADO) 2020 Update released on December 10.
Vietnam’s economy expanded rapidly from a rate of 0.4% in the second quarter of 2020 to 2.6% in the third quarter of 2020, raising the average growth rate in the January-September period to 2.1%.
Thus, the ADB raised Vietnam’s economic growth for the entire of 2020 from 1.8% to 2.3%, attributeble to the boosting of public investment, the recovery of domestic consumption, the increase in trade exchanges and a rapid recovery in China.

The recovery of domestic consumption is forecast to the increase in Vietnam's economic growth. (Illustrative image).

However, Vietnam’s economic growth in 2021 is predicted to fall to 6.1%.
Economic growth in Southeast Asia remains under pressure as COVID-19 outbreaks and containment measures continue, particularly in Indonesia, Malaysia, and the Philippines, according to the update.
“The outlook for developing Asia is showing improvement. Growth projections have been upgraded for the the People’s Republic of China and India, the region’s two largest economies,” said ADB Chief Economist Yasuyuki Sawada.
“A prolonged pandemic remains the primary risk, but recent developments on the vaccine front are tempering this. Safe, effective, and timely vaccine delivery in developing economies will be critical to supporting the reopening of economies and the recovery of growth in the region,” he noted.
Most of developing Asia’s subregions are forecast to contract this year. East Asia is the exception, with an upgraded growth forecast of 1.6% for 2020 based onfaster than expected recoveries in China and Taipei (China). East Asia’s overall growth outlook for 2021 is stable at 7.0%.

(Source: NDO)