The affirmation of Vietnam's long-term foreign-currency issuer default rating reflects the country’s continued strong medium-term growth prospects, despite the Covid-19 pandemic and the global economic spillovers, and strong external finance metrics relative to peers.
Helping ease logistics constraints, continued testing and vaccination and encouraging labor mobility should be priorities, according to World Bank’s recommendations.
Vietnam’s economic growth is expected to slow down due to a resurgence of Covid-19 that has tightened the labor market, lowered industrial output, and disrupted agricultural value chains, according to latest report released by the Asian Development Bank (ADB).
HSBC’s forecast for the country's GDP growth this year has been amended to 5.1 per cent, reflecting the severe impact of the latest Covid-19 outbreak.
While Vietnam’s prospects remain positive, World Bank said that the authorities should address the heightened social, financial, and fiscal risks.
A possible deceleration in 2020 growth of Vietnam's main export markets would weigh on its growth.
While domestic think tanks in Vietnam show optimism on the local economic growth and forecast a better performance than the government’s target, international organisations are more cautious with lower projections.
2018 witnessed the comprehensive success of Vietnam's economy when all 12 socio-economic criteria have been fulfilled and many new records have been set.
Vietnam would experience strong GDP growth this year and next, as it continues to attract FDI inflows and expand their manufacturing base, according to the head of Asia research at Australia & New Zealand Banking Group Ltd.
Fitch Ratings has upgraded Vietnam’s rating from "BB-" to "BB" proving the nation’s improvement on economic growth, foreign exchange reserves and government debt.