Vietnam facing 'huge challenge' to meet 2022 growth target, deputy PM says

HANOI (Reuters) – Vietnam has a giant problem to ship on its financial progress goal of 6.0% to six.5% this 12 months, resulting from headwinds for its economic system and a slower-than-expected world restoration, a deputy prime minister stated on Monday.

Gross home product grew 5.03% within the first quarter from a 12 months earlier, sooner than an enlargement of 4.72% in the identical interval final 12 months, because the Southeast Asian nation reopened extra of its manufacturing and exports-led economic system after enjoyable pandemic restrictions.

Deputy Prime Minister Le Van Thanh informed the Nationwide Meeting progress momentum was going through headwinds, with world restoration slowed by the impacts of the pandemic, the Ukraine-Russia battle, inflation pressures and a surge in oil costs.

He stated a number of provide chains remained disrupted whereas corporations had been nonetheless going through excessive enter prices.

“Within the face of home and worldwide developments, it is an enormous problem to understand 2022 targets, together with a goal for an financial progress of 6.0% to six.5%,” Thanh stated.

Vietnam would take “versatile measures” to make sure macroeconomic stability and include inflation, he stated.

Vietnam’s shopper costs in April rose 2.64% from a 12 months earlier, led by a rise in transportation, meals and building prices.