Industrial production continued its strong growth momentum in April, increasing by 1.1% compared to March. (Illustrative image)

However, it warns of several risks to the Vietnamese economy due to the most recent outbreak of the COVID-19 pandemic in late April.

In its report, the WB stated that most of Vietnam's economic indicators in April were good. Industrial production continued its strong growth momentum in April, increasing by 1.1% compared to March, 24.1% higher than the same period in 2020.

Revenue from retail sales in April also expanded by 2.3% as compared to March, after two consecutive months of decline. The consumer price index in April also recorded an increase of 0.5% compared to March, reflecting a recovery in household consumption.

In terms of exports, a double-digit growth rate was recorded in all major export items, with the fastest increase in the export revenue of machinery. This was attributed to the ongoing economic recovery in the US and China.

According to the WB, although foreign direct investment (FDI) decreased in April, reaching only USD2.2 billion (53% lower than the previous month), it was generally stable.

The WB also valued the accelerated progress of vaccinations against COVID-19 in Vietnam with 506,000 doses administered in April compared with about 50,000 doses in late March.

However, the WB warned that Vietnam is experiencing its fourth COVID-19 outbreak from the end of April 2021, forcing the government to quickly respond by closing schools and applying new restrictive measures on travel. This will affect domestic economic activities, especially tourism, transportation and retail.

Therefore, the World Bank recommended that if it is necessary to maintain or tighten these new restrictive measures on health and travel, the Government of Vietnam should consider a new fiscal stimulus package, including a support package on a larger scale for people and businesses affected by the pandemic./.

BTA