Vietnam's economy maintained a growth rate of 4.48% (yoy) in Q1/2021, equal to the rate of Q4/2020 and higher than that of the same period in 2020 (3.82% (yoy)). In 2020, the country had 29,300 newly registered enterprises, with a total registered capital of more than VND 447.8 trillion and 245.6 thousand registered employees, recording a decrease of 1.4% in the number of enterprises, an increase of 27.5% in registered capital, and a climb of 0.8% in the number of employees, compared to the same period of 2020.
The average CPI in Q1/2021 went up by 0.29% (yoy), the lowest increase in the past 20 years. Inflation (yoy) is expected to rise rapidly starting from April 2021. The central rate of VND versus USD was on an upward trend during Q1/2021, climbing to VND/USD 23,244 at the end of the quarter. Exchange rates at commercial banks dwindled in January and slightly rose from February, ending up at 23,170 VND/USD.
Domestic gold prices continuously diverge from world gold prices as supply became scarcer after the government tightened border management to prevent the spread of COVID-19, while customers’ demand expanded as an asset for safety. Vietnam’s economic growth in 2021 is forecasted to reach 6,0-6,3%.
According to experts, monetary policy needs to carefully balance between easing economic activities and maintaining macroeconomic stability, as inflation risk may rise in 2021.