Despite global uncertainties, Vietnam’s economy is recovering at a considerable pace post-COVID-19. As per the World Bank (WB), Vietnam’s GDP growth in 2022 is projected to reach 5.5 percent from a low of 2.6 percent in 2021 due to the pandemic.
However, challenges remain as the consumer price index (CPI) has been steadily increasing to a seven-month high, recorded at 2.4 percent in March, a rise of 1 percent compared to the prior month.
The upsurge in prices has been primarily driven by production cost spikes, which have resulted from a severe shortage of input material for manufacturing across industries. In fact, mainstream industries are faced with another challenge after COVID-19: surging costs and input shortages, exacerbated by supply chain disruptions.