Based on the latest data, UOB Bank (Singapore) forecasts that Vietnam’s GDP growth in the second quarter of this year will reach 6% year-on-year and then increase to 7.6% in the third quarter.
According to UOB, recent data shows that Vietnam’s underlying growth momentum remained unchanged in the second quarter. The manufacturing sector continued to increase enormously, the first 5 months of the year recorded a growth of 9.24% over the same period, from 8.28% in the first 4 months of the year. This result is also reflected in the Purchasing Managers’ Index (PMI) whose 8th month continued to increase.
Another indicator is that foreign direct investment (FDI) inflows into Vietnam have increased somewhat in May despite geopolitical uncertainties and rising commodity prices.
On the consumer side, lifting domestic COVID-19 restrictions and resumption of international tourism activities have also given new life to the service sector. UOB expects tourism-dependent sectors such as accommodation and food to grow again in the second quarter of 2022 after nine consecutive quarters of decline.