Vietnam’s economy expands in 4Q as manufacturing revives

Vietnam’s economic growth accelerated in the fourth quarter as manufacturing revived and exports extended their recovery from the pandemic slump earlier this year.

Gross domestic product rose 5.22% in the fourth quarter compared to a year earlier, up from a revised -6.02% in the third quarter, the General Statistics Office said Wednesday in Hanoi. That compared to the median estimate of 3.7% for the fourth quarter in a Bloomberg survey of 21 economists. 

The economy expanded 2.58% for the full year, compared to the median estimate of 2.2% in the Bloomberg survey and just above the government’s forecast of 2.5%. The Asian Development Bank earlier this month revised its 2021 growth forecast for Vietnam to 2%, down from 3.8% previously. 

The nation’s economic growth is a great result “given that the pandemic had seriously affected all sectors of our economy,” Nguyen Thi Huong, head of the general statistics office, said during a briefing in Hanoi.

The economy is expected to accelerate its recovery from the pandemic in 2022 with momentum coming from the travel and tourist industries, increasing domestic consumption and government stimulus measures, Le Trung Hieu, head of the GDP department of the statistics office.

Other details Wednesday from the statistics office include:

• Exports rose 24.8% in December from a year earlier, while imports climbed 14.6%. For the full year, exports increased 19% and imports gained 26.5%
• The trade surplus in December was at $2.5 billion. The country recorded a full-year trade surplus of $4 billion
• Manufacturing rose 10.9% in December from a year earlier.
• Consumer prices rose 1.81% in December from a year earlier. The government aims to cap average inflation at 4% this year and next
• Pledged foreign direct investment for 2021 was up 9.2% year-on-year, while disbursed FDI dropped 1.2%.