70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnam economy likely second fastest-growing in Asia-Pacific: S&P Global Ratings
Minh Anh 00:40, 2020/09/27
Vietnam's 2021 growth is forecast at 11.2%, the highest in the Asia-Pacific region.

Vietnam will likely be the second fast-growing economy in Asia-Pacific this year, only behind China, as the Southeast Asian country has emerged as a bright star in containing the Covid-19 pandemic, S&P Global Ratings has forecast in its recent report.


S&P Global Ratings has revised up Vietnam’s GDP growth to 1.9% this year from 1.2% previously. “The economy is well-positioned to enjoy some lift from improving global trade, especially electronics. Tourism will remain largely absent for the foreseeable future, but domestic mobility is normalizing faster than most other parts of the world.”

Overall, Vietnam is expected to be one of the leaders of the post-Covid recovery, able to close its output gap by 2022. Its 2021 growth is forecast at 11.2%, the highest in the Asia-Pacific region.

S&P Global Ratings also revised inflation forecasts higher, up to 2.5% in 2020 from 1.8% previously, in part due to moderately stronger-than-expected domestic demand.

The US-based agency anticipated the country’s monetary policy will remain broadly unchanged. The Vietnamese central bank has brought the dong back to around last year's levels, having only allowed a short period of depreciation at the peak of the crisis, it said.

S&P Global Ratings noted that the key domestic risk remains another Covid-19 wave although authorities have shown their ability to quickly contain outbreaks.

Asia-Pacific is projected to shrink by 2% in 2020 and rebound by about 7% next year. China, where the coronavirus broke out, will likely see its economy grow 2.1% this year, the fastest pace in the region.

TAG: Vietnam GDP economic growth asia-pacific S&P Global Ratings
Other news
17:49, 2024/05/21
Vietnam eyes World Bank’s global logistics top 40 by 2035
Efforts should be made to increase the competitiveness of domestic enterprises to capture a larger market share and elevate the position of Vietnam's logistics sector.
16:08, 2024/05/21
India’s Infosys sees Vietnam as credible partner in digitalization age
Infosys stands ready to work with Vietnam to develop the IT sector and foster innovation, big data, AI, and other emerging areas.
09:38, 2024/05/21
Vietnam’s wine market to reach US$167B in 2027
Vietnam, a nation of 100 million people, has seen a rise in consumption due to the growing middle class, making it a potential market for international wine exporters.
14:08, 2024/05/20
PM orders conclusion of gold market inspection in May
The Prime Minister emphasized the need to regulate the gold market to ensure stability, efficiency, and transparency and to prevent gold hoarding from affecting macroeconomic stability and national financial security.
15:43, 2024/05/18
Accelerating legislation to aid real estate market
This will ease access to land for businesses, attract investment, and help achieve socio-economic goals for the benefit of the public.
15:58, 2024/05/17
PM orders to suspend gold stores failing to comply with e-invoicing rules
Electronic invoicing of gold transactions is critical due to the often small-scale, undocumented, and opaque nature of these deals.