COVID slows Vietnam economy but ample room for policy support: ANZ

September 7, 2021

HANOI -- Economic activity in Vietnam contracted for the fourth consecutive month in August, as the impact of the COVID-19 pandemic continued to be felt. High frequency mobility data pointed to a deep slump in domestic demand.     

ANZ Bank says exports have been hurt by production disruptions, resulting in the biggest year-on-year contraction since May last year, clouding the growth outlook. "There are now clear downside risks to our 2021 GDP growth forecast of 5.2%," the bank says in an economic note.    

"Beyond the near-term challenges, Vietnam's medium term economic prospects remain favourable. The pandemic has not changed the country's attractiveness as a manufacturing hub.

"There is also ample room for policy support to nurture economic recovery further." (ATI).