Vietnam's Resilient Economy: Insights into Fourth Quarter GDP Growth in 2021
Vietnam’s Economic Performance in 2021
Vietnam’s exports are estimated to have risen 19% this year to $336.25 billion, while its industrial output increased 4.8%, according to General Statistics Office (GSO).
GDP Growth and Impact of COVID-19
Vietnam’s gross domestic product growth slowed further this year, government data showed on Wednesday, even as the fourth quarter improved and robust exports helped partially offset some of the economic impacts of the coronavirus pandemic, Reuters reported.
The Southeast Asian country’s GDP grew 2.58% this year, slipping from a 2.91% expansion in 2020, the GSO said. “The COVID-19 pandemic has left a serious impact on all aspects of the economy,” the GSO said in a statement.
Fourth Quarter Recovery and Labor Productivity
On a quarterly basis, Vietnam’s economy recovered strongly in the fourth quarter, after authorities started lifting most coronavirus mobility restrictions in October. GDP grew 5.22% in the fourth quarter from a year ago, rebounding from a contraction of 6.02% in the third quarter.
Vietnam's labor productivity of the whole economy at the current price in 2021 is estimated at 171.3 million VND (7,398 USD) per worker, 538 USD higher than that of 2020. The labor productivity in 2021 increased by 4.71 per cent due to improved qualifications of workers with the proportion of trained workers with degrees and certificates in 2021 reaching 26.1 per cent, higher than the 25.3 per cent of 2020.
Future Economic Outlook
Vietnam is officially targeting GDP growth of 6.0%-6.5% next year. Fitch Solutions has forecast growth at 8% in 2022 as the economy rebounds from the coronavirus lockdowns of this year.
COVID-19 Situation and Vaccination Campaign
The health ministry reported Vietnam’s first case of the highly contagious Omicron coronavirus variant on Tuesday, in a person who was in quarantine after flying from the United Kingdom.
Vietnam has so far recorded 1.68 million coronavirus infections, with 31,600 deaths.
Around 70% of the country’s population of 98 million have received at least two vaccine shots and authorities intend to administer a booster shot to the adult population by the end of the first quarter, Reuters cited a report from Vietnam Health Ministry.
Reference: Vietnam Insider
