Vietnam GDP grows 8.02% in 2022; fastest expansion in 25 years

[Hydrogen]

Reading higher than official growth target of 6.0%-6.5%

HANOI (Reuters) -- Vietnam's gross domestic product grew 8.02% in 2022, the fastest pace annually since 1997, backed by strong domestic retail sales and exports.

The reading is higher than an official growth target of 6.0%-6.5% and growth last year of just 2.58%, when COVID lockdowns left a dent on the economy and impacted factory activity.

The high annual growth number comes despite fears of a global recession and its impact on demand for exports from Vietnam, a key manufacturer of goods like textiles, footwear and electronics for big-name international brands.

"The economic performance is worth noting amid global economic and political uncertainty and challenges," the General Statistics Office (GSO) said in a report.

GDP growth in the fourth quarter was 5.92%, slowing from an expansion of 13.71% in the third quarter, the GSO said.

Exports in 2022 were up 10.6% to $371.85 billion, while retail sales rose 19.8%, the GSO said.

Consumer prices in December rose 4.55% from a year earlier, it added.


https://asia.nikkei.com/Economy/Vietnam-GDP-grows-8.02-in-2022-fastest-expansion-in-25-years

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A rare good news, cool story bro, headline. Vietnam with 8.02% GDP growth. That is quite the accomplishment considering other major powers of the world brag if they manage to achieve 1% economic growth.

It appears economies of some nations are exhibiting high positive growth. Bucking the trend of economic contraction which is plaguing most developed nations, presently.

The trend here appears to be importers searching for manufacturing and production alternatives to china. With vietnam emerging as one popular option. If china is indeed on a decline. It might imply that a vacuum will exist in the future for manufacturing and production sectors.

Can high economic growth stave off negative circumstances of high inflation and global financial contagion? How do people see this playing out over the long term?

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[Husires]

It seems that Vietnam was ready for the shop, as we did not hear many problems for them, and the transfer of some major companies for industries outside China has benefited from it Vietnam significantly and with good relations with the United States, we will witness steady growth for the coming years even with the shadow of contraction.

For example, even to take Apple, I expect that its phones have become basic commodities for many countries, so they will continue to buy, whatever inflation.

The average salary in that country is still maintaining its levels.

[stompix]

That is quite the accomplishment considering other major powers of the world brag if they manage to achieve 1% economic growth.

There was a joke about some country back in the days, not going to name it to not trigger some guys here, it went like this:
- You know the GDP of x tripled last year?
- How did they manage?
- Their cow had two calves!

Vietnam's GDP was 362,6, 8% of that means nearly 30 billion, if we take for example Germany, it will take the German economic growth of only 0.6% to match that, for the US it will be enough a 0.12! Percentages are misleading sometimes, well, most of the time.

Just think of it like Bitcoin, how easy was it back in 2009 to double your stash? How does this work now?  

It seems that Vietnam was ready for the shop, as we did not hear many problems for them, and the transfer of some major companies for industries outside China has benefited from it Vietnam significantly and with good relations with the United States, we will witness steady growth for the coming years even with the shadow of contraction.

And people were saying carriers were obsolete:
Theodore Roosevelt Strike Group Arrives in Vietnam to Commemorate 25 Years of Diplomatic Relations

They still do wonders!

[Die_empty]

A rare good news, cool story bro, headline. Vietnam with 8.02% GDP growth. That is quite the accomplishment considering other major powers of the world brag if they manage to achieve 1% economic growth.

It appears economies of some nations are exhibiting high positive growth. Bucking the trend of economic contraction which is plaguing most developed nations, presently.

The trend here appears to be importers searching for manufacturing and production alternatives to china. With vietnam emerging as one popular option. If china is indeed on a decline. It might imply that a vacuum will exist in the future for manufacturing and production sectors.

Can high economic growth stave off negative circumstances of high inflation and global financial contagion? How do people see this playing out over the long term?

The trade war between US Donald Trump and China' Xi Jinping, China's strict lock-down because of Covid-19, investment in infrastructures and good leadership contributed to the economic growth of Vietnam. Donald Trump pushed a policy that mandated majority of top US companies in China to come back home. Some companies had to move back to the US but others that find it difficult to come back moved to other Asian countries mostly Vietnam. This country almost have the same characteristic with China such as competitive wages, so they are economically attractive.

China took its lock-down policy to far that most companies were struggling to survive, thereby making them to move to closer countries.
I know politicians cannot be trusted but the government led by Prime Minister Pham Minh Chinh have really been developmentally oriented. They have invested so much on critical infrastructures that have attracted more investors to Vietnam. In a time when other nations are going through recessions and other economic problems, dedication and prudence have made this nation to become a pacesetter to others. Congratulations to Vietnam.     

[Alpha Marine]

The trend here appears to be importers searching for manufacturing and production alternatives to china. With vietnam emerging as one popular option. If china is indeed on a decline. It might imply that a vacuum will exist in the future for manufacturing and production sectors.

Vietnam has been pretty impressive with the their export. They export a lot of telephones, mobile phones, and parts. This makes up 21% of their total export. Textile makes up 12%. They also have a very good trade relationship with the U.S. and China which happen to be major markets for these products. In 2020 they were the only country in their region (South-East Asia) to make a double-digit percentage in E-commerce. It increased by 18%.
They're also the world's second highest exporters of coffee, second to Brazil. They've been really impressive.

Vietnam's GDP was 362,6, 8% of that means nearly 30 billion, if we take for example Germany, it will take the German economic growth of only 0.6% to match that, for the US it will be enough a 0.12! Percentages are misleading sometimes, well, most of the time.

The U.S. and Germany have relatively larger economies than Vietnam but with what resources they have they've been able to achieve this. There are other countries with the same size of economy as Vietnam but they could not achieve this.

[Darker45]

Vietnam has been growing quite well in the past few decades. It has somehow already transitioned from a largely agricultural country to agro-industrial, from poor to middle income. Manufacturing has been continuously expanding. Thanks to the large and cheap labor market, it has become a very good alternative to China. It has really stood up as a great investment country especially in Asia. Personally, I'm amazed that certain brands I really admire like Nike, Deuter, Columbia, Osprey, and others are now coming from Vietnam.

[Lucius]

Vietnam has been growing quite well in the past few decades. It has somehow already transitioned from a largely agricultural country to agro-industrial, from poor to middle income. Manufacturing has been continuously expanding. Thanks to the large and cheap labor market, it has become a very good alternative to China. It has really stood up as a great investment country especially in Asia. Personally, I'm amazed that certain brands I really admire like Nike, Deuter, Columbia, Osprey, and others are now coming from Vietnam.

It means that they moved from a country that was primarily oriented towards agriculture to a country that cheaply rents its workers to large global corporations that produce expensive brands for low wages. It is really a great success, especially if we only look at numbers and percentages, but do people live better, are they happy to work in bad conditions for 12 hours a day, 6 days a week?

[Darker45]

Vietnam has been growing quite well in the past few decades. It has somehow already transitioned from a largely agricultural country to agro-industrial, from poor to middle income. Manufacturing has been continuously expanding. Thanks to the large and cheap labor market, it has become a very good alternative to China. It has really stood up as a great investment country especially in Asia. Personally, I'm amazed that certain brands I really admire like Nike, Deuter, Columbia, Osprey, and others are now coming from Vietnam.

It means that they moved from a country that was primarily oriented towards agriculture to a country that cheaply rents its workers to large global corporations that produce expensive brands for low wages. It is really a great success, especially if we only look at numbers and percentages, but do people live better, are they happy to work in bad conditions for 12 hours a day, 6 days a week?

I'm simply talking of the country's GDP. It's indeed consistently increasing. In short, the country is indeed getting rich. Infrastructures are improving so much.

In terms of agriculture, technologies are also getting a lot better. Vietnam is now exporting agricultural products. But on top of this, they are actually exporting electronics and electrical equipment, mobile phones and telephones as well. 

But I'm not talking about the living conditions of the people. It's one thing for a country to have nice GDP figures; it's another to have a high standard of living. China also has a dragon economy. But how's the millions of Chinese at the bottom? They're living in dire poverty.

[russselcarri]

Vietnam has been growing quite well in the past few decades. It has somehow already transitioned from a largely agricultural country to agro-industrial, from poor to middle income. Manufacturing has been continuously expanding. Thanks to the large and cheap labor market, it has become a very good alternative to China. It has really stood up as a great investment country especially in Asia. Personally, I'm amazed that certain brands I really admire like Nike, Deuter, Columbia, Osprey, and others are now coming from Vietnam.

In the era of industrial iteration, Vietnam has indeed become a big production country. The extensive management method has made this country with a population of nearly 100 million people on the top of the world again. Of course, the development of other technology industries is relatively rapid. It is worth looking forward to one day being able to start a business in Vietnam.

[Moneyprism]

it seems that vietnam and other countries in asean have not been too affected by the russian war and global geo-political conditions because this region maintains its neutrality from existing influences .. and also the growth in consumption and the development of the technology which in my opinion helps economic growth in Asean especially in Vietname .. if economic growth continues like this, it is possible that in the next few years Vietnam and several other ASEAN countries will become a new economic power

[blockman]

Those manufacturers that are from China, they're choosing to have it in Vietnam because of easy compliance, and cheaper cost of operations and salaries.
I think with this growth, yeah, they're able to at least mitigate the situation of high inflation but we don't know if this is going to be long term since global economic status are changing every month.

[Lucius]

~snip~
But I'm not talking about the living conditions of the people. It's one thing for a country to have nice GDP figures; it's another to have a high standard of living. China also has a dragon economy. But how's the millions of Chinese at the bottom? They're living in dire poverty.

That's what I was talking about, because numbers are one thing, and what really happens at the level of an ordinary person is something completely different. I have watched several documentaries about these mega factory-cities in China and I cannot say that it is anything other than a modern version of slavery where people live and work in very difficult conditions for very little money, and suicides and serious injuries at work are an everyday occurrence.

I have no doubt that those at the top and the upper middle class have great benefits from all this, but I do not see it as a success for the country as a whole, but only for a part of the privileged.

[dansus021]

Vietnam and other southeast asian country will grow year by year i think "Manila-based multilateral lender Asian Development Bank (ADB) has raised its growth forecast for Southeast Asia this year, with its bullish outlook buoyed by consumption and tourism recovery witnessed in several countries." - CNN(https://www.cnnphilippines.com/business/2022/12/14/Southeast-Asia-growth-2022-ADB-forecast.html)

In my country Indonesia the economy predicted growth 5.2% this year https://www.adb.org/news/indonesia-economic-growth-strengthen-2022-2023-adb

One of the reason i think is Commodity and mineral that world needed located in Asia

[el kaka22]

There is a huge difference between USA or UK growing 1% and Vietnam growing 8%. I mean one of them is world power and their economy is so huge that growing that much means trillions, whereas one of them is tinier and growing even 100% would mean not even getting close to top nations, probably still only at 1% of those huge nations.

It is still good news for the people who live there though, I mean I rather grow than stay put, just because I am not as huge as USA, doesn't mean I shouldn't grow. I don't know how true this news is, or if it's a lie spread by government owned media, which is unfortunately the case for my nation, they say we grew, but we all know we didn't. Hope it's not the case for Vietnam too.

[dothebeats]

Vietnam's exports to its neighboring countries probably helped this growth. They are starting to take advantage of their fertile lands more and more, and are trying to export surplus agricultural products whenever there is an opportunity. I like the fact that they are focusing mainly on agriculture nowadays because it means they can support a lot of their neighbors pretty well with what they can offer and in turn, they receive these profits that can help further more projects. Hopefully this economic growth in the country translates to salary increase too, because economic growth with wage stagnation isn't really growth at all.

[odunybiz]

Can high economic growth stave off negative circumstances of high inflation and global financial contagion? How do people see this playing out over the long term?

High economic growth will have great positive impart on inflation. During a high economic growth, more jobs will be available for citizen and there will be more money in circulation. So far people are ready to work, salary are paid and citizens will have money to purchase goods even at high price. Take for instant, Vietnam moving from agricultural to agro- industrial country; will creat good job opportunities for citizens in the industrial sector and as well increase the income of the country. With the look of things, if Vietnam continues with this development, alot of people will love to migrate to their country.

[STT]

Vietnam has a cost of production below China, they also have gigantic inflation as I understand it which brings into question the quality of any measured growth as it might just be a nominal gain.   If China was in lock down or various stages of that then it likely would bring more business to Vietnam perhaps a greater contrast then seen for a generation I could believe that.
  Ultimately China has a falling working population so there is a general gain quite possible for Vietnam to realize but its not a country without problems of its own.

[yohananaomi]

It must be admitted that currently Vietnam's overall development is one of the ASEAN countries whose growth is quite good. many of their sectors are able to do self-help independently, in fact many industrial sectors are starting to switch a lot from several other ASEAN countries to Vietnam, because the government provides many conveniences and infrastructure is also adequate and labor costs are quite affordable.
so if their economic growth can move well it is not something to doubt.

[Fortify]

A rare good news, cool story bro, headline. Vietnam with 8.02% GDP growth. That is quite the accomplishment considering other major powers of the world brag if they manage to achieve 1% economic growth.

It appears economies of some nations are exhibiting high positive growth. Bucking the trend of economic contraction which is plaguing most developed nations, presently.

The trend here appears to be importers searching for manufacturing and production alternatives to china. With vietnam emerging as one popular option. If china is indeed on a decline. It might imply that a vacuum will exist in the future for manufacturing and production sectors.

Can high economic growth stave off negative circumstances of high inflation and global financial contagion? How do people see this playing out over the long term?

You will often find these situations with lower GDP countries and while it is good, it's not as impressive as you might suggest. Those starting from a lower base will find less friction as there is a lot of "slack" in the system. Over the last few years, even more so with the Covid situation, China has shown that it has lost it's edge as a powerhouse for all sorts of different reasons. Many people are actually scared off by the political direction that China has taken and the instability that has brought, with the government changing the rules (for the worse) all the time and having random crackdowns. The other major thing is wages, the Chinese are starting to demand ever higher pay which was the major reason that they were super competitive in the past and younger generations don't want to work in the more menial jobs that made their country richer in the past.

[yohananaomi]

It must be admitted that due to the impact of Covid, everyone has experienced many obstacles, including of course Vietnam, which had to carry out a lockdown and resulted in the industrial sector, especially factories, not being able to optimally carry out production, even though this was one of the supporting sectors that was highly expected.
but in a situation like that with growth that can reach 2.58%, of course it's still not too bad.
in 2022 they set a target of 6.0% -6.5%, but experienced a sharp increase of 8.02% and of course this is an extraordinary achievement since 1997, this achievement is the highest in Southeast Asia. As a fellow Southeast Asian country, we certainly appreciate and hope that this achievement will continue to encourage Vietnam to continue to progress and develop further.
we know that as a developing country, it is clear that the industrial sector will always be the main parameter because it will smoothen the role of exports, moreover it is supported by many large and well-known companies.