Vietnam economy to expand 6.7pc in 2021: UOB

29 June, 2021 12:00 AM printer

HANOI: Singaporean lender United Overseas Bank (UOB) forecast Vietnam’s GDP would grow by 6.7 percent this year.

It said Vietnam’s economic growth trajectory remained on track, with exports in the first five months growing 35.5 percent year-on-year, while imports rose 54 percent, report agencies.

Foreign direct investment (FDI) inflows remain upbeat so far in 2021, a reflection of investor confidence and Vietnam’s relevance in the global supply chain. Registered capital FDI this year as of May hit $14 billion, rising marginally by 1 percent from last year.

However, the fourth outbreak of Covid-19 that started on April 27 has resulted in movement restrictions and lockdowns that disrupted a range of business and manufacturing operations, it said in a Friday report.

UOB said the recent outbreaks of Covid-19 and discovery of new virus variants certainly pose a downside risk to the economy, as vaccination rates have been low relative to neighboring countries.

The government has a growth target of 6.5 per cent this year.