Vietnam’s GDP declared robust, growth expected
Vietnam’s gross domestic product (GDP) growth is forecast to be robust in 2016 and 2017, possibly outperforming other countries in the region, according to international banks.
Illustrative image (Source: VNA)In a report released recently, ANZ expects Vietnam’s GDP to rise 6.9 percent in 2016 and 6.5 percent in 2017.
“Yet we acknowledge the downside risks emanating from the contraction in agricultural output. Global expectations for rice output are not promising, weighing on agricultural exports,” the ANZ report said.
Early this week, the Asian Development Bank (ADB)’s growth forecast for Vietnam’s GDP was robust, with predictions of 6.7 percent in 2016 and 6.5 percent in 2017.
Credit Suisse also said that Vietnam’s GDP would rise 6.3 percent in 2016, third fastest in emerging market economies after China (6.6 percent) and India (7.8 percent).
Credit Suisse said Vietnam’s growing popularity as a global manufacturing hub was one of the reasons for the growth.
It also expects Vietnam’s export growth to moderate slightly from 7.1 percent in 2015 to 6.9 percent in 2016 due to a recent slowdown in the US and China’s declining appetite for imports while foreign direct investment (FDI) reaches 13 billion USD, down from 14.5 billion USD in 2015.
“The manufacturing sector, which accounts for 24 percent of Vietnam’s GDP, attracted 57 percent of the FDI inflows last year. The country stands to gain even more investment from the Tran-pacific Partnership, a free trade agreement among 12 countries,” Credit Suisse said.
However, the Vietnamese equities market still has its challenges, such as liquidity, a relatively small number of listed firms, and limits on foreign ownership.-VNA
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