London (VNA) – Strong purchasing power anddemand have created a fast and strong locomotive for economic growth, andVietnam is forecast to record a GDP growth rate of over 8% this year, said ExecutiveChairman of Dragon Capital Dominic Scriven.

This is a rare high amid thecontext that 2022 is a year full of difficulties for not only Vietnam but alsothe whole world, he told the Vietnam News Agency.

He held that this growth isdriven by a purchasing power rebound after the COVID-19 pandemic, as well asthe strength of the Vietnamese economy, especially political and socialstability, the stability of economic and investment policies, and its opennessand integration into the global economy.

Scriven noted the economy’s internal driving forces are relativelybalanced and strong, from people’s demand, enterprises’ strength, and foreigninvestment attraction to Vietnam’s competitiveness thanks to free tradeagreements, which have helped open up new markets.

Vietnam is assessedas a new and strong economy with an internationally recognised stature. It is arare example of stability among Southeast Asian nations, the Dragon Capital leader went on, adding that whileglobal uncertainties this year are mainly caused by food and energy crises, itseems to haven’t suffered from too big impacts.

Echoingthe view, Dr. Ho Quoc Tuan, senior lecturer in finance and accounting at theUK-based University of Bristol, said since the year’s beginning, Vietnam hassucceeded in sustaining high economic growth and low inflation, about 3% -lower than other Asian countries like Japan, Indonesia, the Republic of Korea,and many European countries, which have neared an inflation rate of over 10%.

However, he noted, itis hard for Vietnam to maintain a high growth rate amid prolonged difficultiespredicted for the global economy for many months to come. In particular, itsexports will be affected by a slowdown in global export growth.

It will also be difficultfor enterprises to maintain growth and capital accessibility since the countryis facing increasing production costs while interest rates are surging, causingpressure on foreign exchange rates and general interest rates in the economy.

Tuan recommended that to keep economic growth, Vietnamshould use fiscal tools, including boosting public spending, especially oninfrastructure development, power generation, and climate change fight, tosupport the economy and enterprises. It is also important to step up marketreforms and create opportunities for businesses to develop further.

Scriven said Vietnam should not lower vigilance but continuereforming the labour market, the real estate market, trade and visa regulations,and accounting standards.

The British expert also pointed out chances for Vietnam asglobal supply chains are being restructured, and many foreign firms are payingattention to the country, which is currently viewed as a manufacturing hub forthe Asian market./.