With support from robust domestic retail sales and exports, Vietnam’s GDP expanded by 8.02% in 2022, the strongest annual rate since 1997. However, the slowdown in the rest of the world is posing challenges.
The reading is higher than the 6.0%–6.5% official growth objective and the 2.58% increase recorded last year, when the COVID-19 lockdowns had a negative influence on the economy and factory activity.
Despite worries about a worldwide recession and its effects on demand for Vietnam’s exports—a major producer of commodities including apparel, footwear, and electronics for well-known international brands—the country has seen a strong yearly growth rate.
The General Statistics Office (GSO) stated in a study that “the economic performance is worth recognizing notwithstanding global economic and political instability and obstacles.”
According to the report, in 2022, the industrial and construction sector increased by 7.78%, the services sector grew by 9.99%, and the agricultural sector grew by 3.36%, Reuters cited.
According to the GSO, retail sales increased 19.8% in 2022, while exports increased 10.6% to $371.85 billion. Consumer prices increased by 4.55% from a year earlier in December.
Despite the economy expanding at its greatest rate in decades in 2022, experts warned that it still faces challenges because falling global demand has already affected its shipments.
According to Can Van Luc, an economist at the Bank for Investment and Development of Vietnam and a government advisor, “the slowdown in global economic development is making it harder for Vietnam to enhance its exports and attract more foreign investment next year.”