This is an upgrade from World Bank’s April forecast when it pegged Vietnam’s growth at 5.3%, it said in a report released Tuesday.

Farmers harvest lychee in the northern province of Bac Giang in June 2021.

The growth forecast for Vietnam exceeded that of the Philippines (6.5%), Malaysia (6.4%), and Indonesia (5.1%).

The World Bank lowered its forecast for China from 5% to 2.8%.

Growth in developing East Asia and the Pacific outside of China is forecast to accelerate to 5.3% this year from 2.6% last year.

Growth in the region has been driven by recovery in domestic demand, enabled by a relaxation of Covid-related restrictions, and growth in exports, the World Bank said in a press release.

China, which constitutes around 86% of the region’s output, uses targeted public health measures to contain outbreaks of the virus, inhibiting economic activity.

But the global economic slowdown is beginning to dampen demand for the region’s exports of commodities and manufactured goods.

Rising inflation abroad has provoked interest rate increases, which in turn have caused capital outflows and currency depreciations in some East Asia and Pacific countries.

These developments have increased the burden of servicing debt and shrunk fiscal space, hurting countries that entered the pandemic with a high debt burden.

"Policymakers face a tough tradeoff between tackling inflation and supporting economic recovery," said World Bank East Asia and Pacific chief economist Aaditya Mattoo.

Better policies for food, fuel, and finance would spur growth and insure against inflation, he added.

Vietnam’s growth is expected to hit 6.7% next year, still among the highest in the region.

GDP in first half of 2022 up 6.42%

Vietnam’s gross domestic product (GDP) in the first six months of 2022 expanded 6.42%, higher than the 5.74% recorded in the same period last year.

Q2 GDP growth highest since 2011

Vietnam’s GDP rose 7.72 percent year-on-year in Q2, the highest since 2011, driven by a strong rebound in manufacturing as the economy recovers from two years of Covid-19.

Industrial parks, economic zones make important contributions to GDP growth

Vietnam has about 335 industrial parks across the country together with 17 economic zones, which play an important role in investment attraction and State budget collection.

FDI influx prompts Vietnam to improve business environment: experts

A recent strong influx of foreign direct investment (FDI) to Vietnam has prompted the government to design long-term policies and create a favourable and transparent environment for foreign investors to operate in a long term in the country, according to experts.

Networking events held to enhance Vietnam - RoK business partnerships

The Korea Trade - Investment Promotion Agency (KOTRA) have arranged 166 direct meetings between 25 businesses from Incheon city, the Republic of Korea (RoK), and nearly 100 Vietnamese importers over the past few days to seek partnership opportunities.

Source: VnExpress