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The report says Viet Nam can maintain inclusive growth by softening the pandemic’s impact on poverty and incomes.

Vietnam’ Strong, Steady Growth Boosted by Success in Containing Covid-19
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Viet Nam’s economic growthis expected to rebound to6.7% this yeardespitethe recent resurgence of the coronavirus disease (COVID-19) pandemic in nearby countries and rise to7.0% in 2022,according toa new report from the Asian Development Bank (ADB).
“Stagnant domestic consumption and weak external demand caused by the COVID-19 pandemicslowed downViet Nam’s economy last year, butthe growth momentum remains strong this year and next, made possible by Viet Nam’s success in controlling the spread of the virus,” said ADB Country Director for Viet Nam Andrew Jeffries. “But significant risks remain this year and next, including the emergence of new coronavirus variants and a delay in the government’s vaccination plan.”
The Asian Development Outlook (ADO) 2021 saysViet Nam’s economic growth will beboostedby export-oriented manufacturing, increased investment,and expanding trade.The growth momentum is expected to continue, thanks to ongoing reforms to improve the business environmentand Viet Nam’s participation in multiple free trade agreementsinvolving almost all advanced economies.Rising international oil prices and increased domestic consumption is expected to pushinflation up to 3.8% this year and 4.0% in 2022.
Faster-than-expected recovery in the People’s Republic of China and the United States would significantly expand Viet Nam’s trade and growth prospects, the report says. The uneven global COVID-19 vaccine rollout, however,could delay Viet Nam’s return to its strong pre-pandemic growth path,given the country’s reliance on external trade.Aquickrevival of domestic private investment may worsen the risk of asset bubbles, if credit is not channeled to productive sectors. 
The report saysViet Nam can maintaininclusive growth by softening the pandemic’s impact on poverty and incomes. It urged the government to adopt along-term sustainable strategy to help the poor and vulnerable diversify their livelihoods through measures such as vocational training and improved access to microfinance for new businesses.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

DIEP NGUYEN