Vietnam’s Gross Domestic Product (GDP) will grow 6.6 percent in 2021, the World Bank (WB) predicted in its latest update for East Asia and the Pacific.
Only China and Vietnam are experiencing a rebound, since production in those countries already exceeds the levels prior to the Covid-19 pandemic, the WB commented.
Such a reaction is possible thanks to the effectiveness of the containment measures for the SARS-CoV-2 coronavirus, the ability to take advantage of the reactivation of international trade and the governments’ capacity to provide fiscal and monetary support to companies.
The United Overseas Bank of Singapore agreed with such estimates, but it predicted an expansion of 7 percent this year for the Vietnamese GDP. Pandemic aside, it considered the sustained increases in exports and foreign direct investment will be fundamental.
A few days ago, the international credit rating agency Fitch Solutions made a longer-term forecast and estimated that Vietnam’s economy would grow an annual average of 6.5 percent this decade.
Fitch added the signing by Vietnam of several advantageous free trade agreements, the increasing incorporation of high-tech machinery and equipment into production, and the constant construction of infrastructure works to the factors mentioned by the World Bank and the Bank of Singapore.