ADB country director Andrew Jeffries said that 2021 is a challenging year for Vietnam. Growth picks up in the first half of the year largely because of trade expansion. However, the 4th wave of the pandemic since late April has taken a toll on businesses and the labor market, and slow down the economy in the 2nd half of the year.

"GDP growth in 2021 is adjusted downward 3.8%, reflecting lower domestic conditions rather than earlier projected. Looking forward, growth is forecast to bound back at 6.5% in 2022 supported by a revival of domestic demand and exacerbation in the disbursement of public investment and expansion to new export market, thanks to the multiple free trade agreements and expected global economic recovery, " said Jeffries.

The ADB country director voiced optimism about Vietnam’s middle and long-term economic prospect.

The updated report estimates Asian developing economies will grow 7.1% in 2021, a decrease of 0.2% against the previous report in April.