Representational image. AFP
Hanoi: Vietnam’s economy grew by eight per cent in 2022, driven by strong exports and retail sales, authorities said on Thursday.
Growth in the communist nation stuttered at around three per cent for two consecutive years due to the pandemic.
Before that, Vietnam was a success story among Asian economies, posting a growth of seven per cent in 2019.
This year the economy grew by an estimated 8 per cent, beating the government’s target of 6-6.5 per cent, the official statistics office said.
“The economy has recovered” from the COVID-19 pandemic, it added.
The upward trend may not sustain
The growth slowed in the final quarter of the year as economies worldwide were hammered by the war in Ukraine and massive inflation.
Exports turnover in the fourth quarter experienced a year-on-year decline of 6.1 per cent due to a lack of overseas orders, the statistics office said.
Earlier this month the Asian Development Bank forecasted growth of 7.5 per cent for Vietnam’s economy for 2022, although it warned of weakening global demand for its exports.
The lender said it forecast Vietnam’s economy to grow 6.3 per cent in 2023.
The recent cost-of-living crisis in Europe and the United States — major markets for Vietnamese-produced goods — has seen the buying power of Western shoppers plunge.
Many factories in Vietnam produce goods for foreign parent businesses that supply products to brands worldwide. Over the last few months, these parent companies have seen orders by brands being cancelled due to lowering demand.
The factories had to either lay off their staff to stay afloat or shut down completely.
Over 5 lakh workers in the manufacturing industry, which caters to the European and US market, had their working hours reduced, according to a VnExpress report.
Around 40,000 were laid off in just the last four months, according to the Vietnam General Confederation of Labour.
With inputs from AFP
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