According to UOB Bank (Singapore), the manufacturing industry continues to grow strongly, FDI capital is rising again, tourism is recovering… are the driving forces behind Vietnam’s growth.
Based on the latest data, UOB Bank (Singapore) forecasts Vietnam’s GDP growth to reach 6% year-on-year in the second quarter of this year and then increase to 7.6% in the third quarter.
According to UOB, recent data shows that Vietnam’s underlying growth momentum was unchanged in the second quarter. The manufacturing sector continued to grow strongly, recording growth of 9.24% over the same period in the first 5 months of the year, 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 climb.
Another indicator is that foreign direct investment (FDI) inflows into Vietnam increased somewhat in May, despite geopolitical uncertainties in the world and rising commodity prices.
On the consumer side, the lifting of domestic COVID-19 restrictions and the resumption of international tourism activities have also revitalized 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 contraction.