HANOI, Sept. 22 (Xinhua) -- The Asian Development Bank (ADB) has adjusted down its forecast of Vietnam's gross domestic product (GDP) growth in 2021 to 3.8 percent from the previous estimate of 5.8 percent in July.
Vietnam's economic growth picked up in the first half of 2021 largely because of higher trade volumes, but a resurgence of the COVID-19 pandemic that started in late April has tightened the country's labor market, lowered industrial output, and disrupted its agricultural value chains, the bank said in a report released on Wednesday.
According to the report, the short-term outlook remains challenging for Vietnam's economy, with the prolonged COVID-19 wave being the main negative factor, especially if the country's vaccination rate does not increase significantly.
Vietnam's GDP grew 2.91 percent in 2020, the lowest growth rate recorded over the past decade. A target of around 6 percent of economic growth in 2021 was previously set by the country's top legislature.