(VOVWORLD) - The World Bank (WB) has predicted Vietnam’s GDP growth at 5.3% this year, down from the previous forecast of 6.5% issued last October.
WB’s East Asia and Pacific Chief Economist Aaditya Mattoo pointed to the difficulties of the COVID-19 Omicron variant, which has led to a surge in infections; considerable impacts on oil import which is equivalent to 3% of the GDP; and higher import prices of other materials like iron and steel.
Though Vietnam was recognized as one of the countries that have made the most of opportunities to expand trade, that fact has also made it more vulnerable to external shocks. This means Vietnam needs to be successful in building and completing its social security system, according to the economist.
The WB said that Vietnam’s international tourism is expected to recover strongly from the middle of this year.