World Bank upgrades Vietnam’s 2018 growth forecast to 6.8%

Friday, 2018-06-15 10:36:24
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Vietnam's economy is strongly supported by the FDI sector.
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NDO - The World Bank has revised its 2018 growth forecast for Vietnam from 6.5% to 6.8%, citing an improved medium-term outlook.

The institution said on June 15 that Vietnam's economic growth momentum remains robust and is accompanied by broad macroeconomic stability.

In the first three months of 2018, the Vietnamese economy grew by an impressive 7.4% thanks to an increase in global demand and a recovery in investment from FDI and private sector, the World Bank noted.

According to Ousmane Dione, the World Bank’s chief in Vietnam, the country’s strong economic growth in 2017 and in the first quarter of 2018 gives it a firm foundation to move forward.

The World Bank forecasts that Vietnam’s economy will grow by 6.8% this year before moderating to 6.6% in 2019 and 6.5% in 2020, due to an expected slowdown in global demand.

In the meantime, inflation is expected to remain around the 4% target set by the government.

Despite the improved prospects, significant risks remain, as seen in the slower progress in the restructuring of state-owned enterprises (SOEs) and the banking sector.

According to Sebastian Eckardt, the World Bank’s lead economist in Vietnam, the government should carry out comprehensive and deep structural reforms to remove barriers to private businesses and enhance the performance of SOEs.