Vietnam is one of Asia's most dynamic, export-oriented emerging market economies, driven by foreign direct investment (FDI) and rapid industrialisation. During the initial phase of the global pandemic in 2020, Vietnam's prompt public health response allowed it to avoid severe nationwide lockdowns. Consequently, while regional neighbours contracted sharply, Vietnam registered positive Gross Domestic Product (GDP) growth. However, in 2021, severe regional supply chain disruptions and local lockdowns slowed its momentum. By 2022, Vietnam experienced a powerful economic acceleration, with GDP growth surging to its highest rate in over a decade.
Fig.1 – A comparison of Vietnam and the ASEAN-5 annual % real GDP growth rates – 2018–2023
| Year | Vietnam (%) | ASEAN-5 average (%) |
|---|---|---|
| 2018 | 7.1 | 5.3 |
| 2019 | 7.0 | 4.9 |
| 2020 | 2.9 | -3.4 |
| 2021 | 2.6 | 3.4 |
| 2022 | 8.0 | 5.5 |
| 2023 | 5.1 | 4.2 |
Following the rapid post-pandemic surge in 2022, economic expansion moderated by 2023, falling back to 5.1%. Global headwinds, such as tightening monetary policy in Western markets and weakened electronic export orders, weighed on growth. Nonetheless, strong domestic tourism and robust inflows of FDI in the high-tech electronics and garment sectors continued to bolster the economy.
Inflation also became a key focal point for policymakers in late 2022. The State Bank of Vietnam adjusted its policy rates upward to maintain macroeconomic stability and manage exchange rate pressures.
Fig.2 – Vietnam's Consumer Price Index (CPI) Quarterly Figures – Jan 2022 to Jan 2023
| CPI (2019 = 100) | Jan-22 | Apr-22 | Jul-22 | Oct-22 | Jan-23 |
|---|---|---|---|---|---|
| Index Value | 104.2 | 105.8 | 107.1 | 108.9 | 110.1 |
State two factors which might account for the increase in the rate of growth of the Vietnamese economy between 2021 and 2022.
