ADB maintains Vietnam’s 2022 GDP growth forecast at 6.5%

The report says Vietnam’s economic growth will be strongly supported by trade expansion, faster-than-expected manufacturing recovery, travel, and the disbursement of public investment.

However, the economy is facing difficulties due to a worsening external economic environment brought on by aggressive monetary tightening in advanced nations.

The economy’s inflation estimates are kept between 3.8 and 4.0 percent since, after meeting external demand, the food supply will be sufficient.

Southeast Asia's inflation forecast for 2022 is raised significantly from 3.7% to 4.7%. Bank Indonesia, the central bank, expects inflation to hit 4.5% by December. Inflation in the Philippines accelerated to 6.1% in June and averaged 4.4% in the first half.

Inflation forecasts for Thailand are revised up from 3.3% to 6.3% for 2022 and from 2.2% to 2.7% for 2023 mainly because rising energy prices and higher cost pass-throughs are expected to affect prices for a wider range of products.

In Malaysia, lower headline inflation due to price controls and subsidies on oil and basic food products prompts a downward revision in 2022's inflation forecast.

In the smaller economies, rising fuel prices and a significant currency drop against the US dollar are building up pressure on inflation, particularly in the Lao PDR and Myanmar.