Vietnam’s merchandise trade balance in surplus at the start of 2022

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Vietnam’s merchandise trade balance is in surplus despite a slowdown in exports, while foreign direct investment (FDI) commitments and disbursements have gotten off to a strong start this year, according to the report. “Vietnam Macroeconomic Watch” monthly report published by the World Bank. All major mobility indicators rose sharply ahead of the Lunar New Year on February 1.

The country’s vaccination coverage has exceeded 73% of the population.

Industrial production continued to register strong growth, albeit at a slower pace and with mixed performance in various sub-sectors, while retail sales recorded the first positive annual growth rate since the Covid-19 outbreak hit the country at the end of April last year.

Vietnam’s merchandise trade balance is in surplus despite a slowdown in exports, while foreign direct investment (FDI) commitments and disbursements have gotten off to a strong start this year, according to the monthly “Vietnam Macro Monitoring” report released by the World Bank. All major mobility indicators rose sharply ahead of the Lunar New Year on February 1.

The country attracted $2.1 billion in FDI commitments in January, a year-on-year increase of 4.2%. Growth was driven by significant investment in the expansion of existing businesses, particularly in electronics, and by active merger and acquisition activity.

The latter doubled in value in January compared to a year ago, reaching more than 400 million dollars, equivalent to one-fifth of total FDI commitments, according to the World Bank report.

Manufacturing continued to account for about three-fifths of total commitments, followed by real estate at 22.5%. Additionally, disbursements from approved FDI projects continued to recover from their slump in the third quarter of 2021, increasing by 6.8% year-on-year in January.

Rising energy prices continued to be the main contributor to consumer price index inflation, while food prices held steady, keeping inflation in check.

Fibre2Fashion (DS) News Desk

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