Singaporean economists appreciate Vietnam’s economic recovery
|Singaporean economists appreciate Vietnam’s economic recovery - A corner of Ho Chi Minh City's District 2. (Photo: VNA)|
John Paul Lech, portfolio manager at Matthews Asia, said Vietnam is a frontier market star. While frontier markets are generally smaller, less liquid and have limited foreign investor access, it has bucked the trend.
For the first six months of 2022, foreign direct investment (FDI) into Vietnam grew by nearly 9% to over 10 billion USD.
Economist Chua Han Teng from DBS, the largest bank in Singapore, forecast Vietnam’s GDP expansion will reach 7% this year to meet the set target.
He held that the service sector, especially retails, will continue growing fast when COVID-19 is classified as an endemic disease.
However, economist Yun Liu said despite an optimistic growth trend, the energy crisis has begun affecting Vietnam’s growth, recommending the country pay attention to rising growth risks, especially those posed by soaring energy prices.