Vietnam’s ongoing economic recovery remains strong, despite heightened global uncertainties relating to the protracted conflict in Ukraine, higher commodity prices, and supply chain disruption caused by health-related lockdowns in China.
This assessment was given in the June edition of the World Bank’s (WB) monthly publication Vietnam Macro Monitoring.
According to details in the report, industrial production continued to witness a robust expansion of 10.4% on-year, while retail sales growth rebounded at 4.2% on-month and 22.6 % annually, thereby suggesting a strong recovery in terms of private consumption.
Amid a heightened degree of global uncertainties, the growth of exports slowed and any growth relating to imports plateaued. In addition, FDI commitment also fell for the fourth consecutive month, while FDI disbursement registered a six-month growing trend.
Furthermore, CPI inflation edged up from 2.6% in April to 2.9% in May, with this largely being driven by a rise in gasoline and diesel prices which stand 54.5% higher than in May last year.
Producer price inflation showed signs of easing in May as both input costs and output prices have been rising at their slowest rates for three months, whilst credit growth remained strong at 16.9% on-year, while overnight interbank interest rates dropped sharply from 1.73% in April to 0.33% as of the end of May.