WB: Vietnam’s GDP to grow 6.8 percent this year
Updated : Friday, October 05, 2018 9:29 AM (GMT+0700)

TheWorld Bank (WB) predicts Vietnam’s GDP growth this year at 6.8 percent in itsEast Asia Pacific Economic Update released on October 4, compared to the6.5-percent projection last April.

 
Sebastian Eckardt, the World Bank's Lead Economist for Vietnam, speaks at the launch
of the EAP Economic Update in Hanoi on October 4 - Photo: VNA

According to the report,Vietnam’s economy continues to perform well, propelled by the sustained globalrecovery and continued domestic reforms. Robust growth is boosting job creationand income growth, leading to broad-based welfare gains and povertyreduction. 

Despite improved short-termprospects, external and domestic risks and longer-term challenges remain. Theseinclude risks of global financial volatility and rising protectionism as wellas domestic vulnerabilities associated with remaining banking sectorweaknesses, elevated public debt and limited fiscal space, and subduedproductivity growth.

Vietnam’s medium-termoutlook has improved further, the WB said, adding that real GDP is nowprojected to expand by 6.8 percent in 2018 (up from 6.5 percent in the previousprojection) before moderating to 6.6 percent in 2019 and 6.5 percent in 2020due to the envisaged cyclical moderation of global demand.

The WB expects the country’sinflation to remain around the 4-percent government target, predicated on sometightening of the monetary stance to counter price pressures emanating fromdomestic input price pressures and rising global commodity prices.

It recommends Vietnamesepolicymakers take advantage of the favourable economic environment to pushahead with policies that increase macroeconomic resilience and lay thefoundation for sustained growth in the future. 

The Update said prudentmacroeconomic policies should be accompanied by continued focus oncomprehensive and deep structural reforms, including regulatory reforms toremove barriers to and reduce the cost of private sector activity, humancapital and high-quality infrastructure investments, and further reforms toenhance productivity of the State-owned enterprise sector. 

Several provinces in Vietnamhave been affected by storms and flooding recently. Thus, investing in climatechange mitigation measures remains a priority for reducing households’vulnerability to shocks, according to the WB.

Source:VNA

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