Along with "Doi Moi", global integration and international economic cooperation are among the main driving forces behind Vietnam's achievements in poverty reduction and economic development. Vietnam’s substantial and increasing interconnection with other economies, via trade and investment, has been contributed greatly to the country’s economic development on one hand, but also accompanied by a considerable level of risks and uncertainties in the global markets on the other hand. During the recent years, the continued resurgence of the Covid-19 pandemic has brought about substantial changes to all aspects of the economy, including slower growth and recession, trade and tourism declination, commodity markets shocked in terms of supply and demand. Public debt and the budget deficit increased as countries all over the world had to launch economic support packages.
In 2021, despites Government’s effort in salvaging the economy amid the Covid-19 pandemic with proven results, the economy still endured a sharp declination of growth rate – the lowest level in many years. The recovery path ahead is believed to be bumpy. Against this background, a comprehensive review and assessment of the international economic situation and other countries’ policy responses in 2021 and outlook for 2022 would provide useful inputs for policy-makers to draw lessons, develop strategies, and design appropriate policies for Vietnam to better prepare, respond and navigate through the uncertainties and challenges.
With an aim of providing an overview of the world economic situation in 2021, draw lesson learned for Vietnam as well as policy implication, KAS Vietnam co-operated with Vietnam Institute for Economic and Policy Research to implement an in-depth research to (1) analyze and summarize information and data from reliable sources to develop in-depth analysis and comprehensive report on the international economic situation in 2021 and forecast for 2022; (2) analyze and evaluate major trends and development in global trade, tourism, financial and monetary markets, commodity markets, public debt, budget deficits, and major economic supporting policies; (3) identify policy implications and recommendations for Vietnam
