WB official optimistic about Vietnam"s 2022 GDP growth prospect

Jacques Morisset, WB Lead Economist and Programme Leader for Vietnam (Photo: VNA)

Vietnam's target of bringing its GDP growth to 6-6.5 percent in 2022 as set in the recent session of the National Assembly is entirely possible if it can effectively control the COVID-19, and improve the supply – demand balance, an official of the World Bank (WB) has said.

According to Jacques Morisset, WB Lead Economist and Programme Leader for Vietnam, the biggest risk to Vietnam’s economy in 2022 can be the complicated developments of the pandemic with the emergence of new variants.

He also mentioned internal economic risks, saying that Vietnam is an open economy which will depend on the situation in other countries in the world.

Another risk is related to inflation, he said, noting that Vietnam’s economy is currently facing import inflation, while domestic commodity prices have not yet increased because demand remains lower than supply.

Illustrative image (Photo: VNA)

Regarding Vietnam's economic prospects in the coming time, Morisset pointed out three new motivations for growth.

The emergence of the COVID-19 pandemic has indirectly made Vietnam one of the reliable destinations for many large foreign enterprises, which have the goal of persifying their supply chains, he said.

The country can also take advantage of opportunities from green economy, he noted, saying that Vietnam is one of the most affected by climate change, but it can also take advantage of this.

The third growth driver is domestic demand. As Vietnam becomes a higher income country with a growing number of middle class people, the domestic demand will be stronger, he said.

Morisset affirmed that the WB will continue to support Vietnam in achieving its ambitious goal of becoming a high-income and prosperous country by 2045.

The bank is working closely with the Vietnamese Government to promote sustainable development and effectively respond to climate change in the Mekong Delta region, and reduce air pollution in big cities, he said.

In addition, the two sides are joining hands in areas of inclusive development and gender-related issues in order to ensure people's participation in the economy, minimise the impact of the pandemic, and fully tap future opportunities, the economist said./.