JavaScript is off. Please enable to view full site.

Vietnam’s GDP growth likely to remain on the upswing: World Bank

Friday, April 14, 2017, 19:00 GMT+7

Vietnam’s medium-term outlook is expected to remain broadly positive with a sustained GDP growth of 6.3 percent or more over the next three years, the World Bank said in a new report.

The latest East Asia and Pacific Update, the World Bank’s twice yearly comprehensive review of the region’s economies, was published on Thursday, providing an analytic outlook on Vietnam’s economy for the 2017-19 period.

Vietnam’s GDP growth is projected to improve gradually during the period, driven by robust domestic demand and export-oriented manufacturing.

The country’s GDP was estimated to have expanded by 6.2 percent in 2016, a .6 percent drop from 2015.

The rate is expected to recover slightly, edging back to 6.3 percent in 2017 and 6.4 in 2018 and 2019, the report predicts.

Vietnam's actual GDP growth in 2016 was 6.68 percent, with the goverment setting a 6.7 percent target for 2017.

The services sector contributed the most to the growth in 2016, followed closely by industry and construction, agri-forestry and fishery, and product taxes.

Inflation overall is expected to remain moderate, steadying at four percent over the next three years, thanks to subdued global commodity and energy prices.

Some fiscal consolidation is expected, while an acceleration of divestment is prospective, though at a gradual pace that would spur the rise of public debt, the report warned.

Domestic downside risks, such as delayed implementation of structural and fiscal reforms, could intensify Vietnam’s macroeconomic vulnerabilities and lower potential growth, while intensifying uncertainties of the global economy could dim Vietnam’s growth outlook through trade and investment channels.

Meanwhile, Vietnam’s poverty rate ($1.9 per day PPP terms) continues to decline, reaching 1.2 percent by the end of the three-year period.

Vietnam’s effort to improve household welfare for its growing population of 92.7 million continues to be challenged by its vulnerability to climate and environmental disasters.

Victoria Kwakwa, WB’s Vice President for the East Asia and Pacific, suggested that Vietnam improve its public spending and enhance global and regional integration to sustain resilience.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!

TUOI TRE NEWS

More

Read more

;

Photos

VIDEOS

Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news

Is it raining yet?

Unlike many expats or tourists, I’m quite comfortable with the heat as I grew up in Queensland and lived in Malaysia as a kid