Vietnam facing ‘huge challenge’ to meet 2022 growth target, deputy PM says

HANOI (Reuters) – Vietnam has a big challenge to deliver on its economic growth target of 6.0% to 6.5% this year, due to headwinds for its economy and a slower-than-expected global recovery, a deputy prime minister said on Monday.

Gross domestic product grew 5.03% in the first quarter from a year earlier, faster than an expansion of 4.72% in the same period last year, as the Southeast Asian country reopened more of its manufacturing and exports-led economy after relaxing pandemic restrictions.

Deputy Prime Minister Le Van Thanh told the National Assembly growth momentum was facing headwinds, with global recovery slowed by the impacts of the pandemic, the Ukraine-Russia conflict, inflation pressures and a surge in oil prices.

He said several supply chains remained disrupted while firms were still facing high input costs.

“In the face of domestic and international developments, it’s a huge challenge to realise 2022 targets, including a target for an economic growth of 6.0% to 6.5%,” Thanh said.

Vietnam would take “flexible measures” to ensure macroeconomic stability and contain inflation, he said.

Vietnam’s consumer prices in April rose 2.64% from a year earlier, led by an increase in transportation, food and construction costs.

(Reporting by Khanh Vu; Editing by Martin Petty)

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