An electronic device production factory (Photo: VNA)

Hanoi (VNA) – Vietnam’s medium-term outlook remains favourable with GDP expected to expand by 6 percent this year, according to the World Bank (WB)’s Taking Stock report.

The WB said, despite a fragile global environment, Vietnam’s economy remains resilient, thanks to robust domestic demand and export-oriented manufacturing.

The report, a biannual review of the country’s economic performance, found that Vietnam’s growth slowed to 5.9 percent during the first three quarters of the year, mainly because of a severe drought that has reduced agricultural output, cut down on oil production and slowed external demand. 

The fundamental drivers of growth – resilient domestic demand and export oriented manufacturing – remain in force.  

Vietnam’s growth was accompanied by low inflation and widening current account surplus. And despite price hikes for health and education services, core inflation remains low and headline inflation is expected to stay below the official target of 5 percent.

“Vietnam’s macroeconomic stability creates a favorable environment for policy makers to accelerate structural reforms, which is crucial as the country moves toward a more productivity-led growth model,” said WB Country Director for Vietnam Ousmane Dione. 

“The adoption of the 2016-2020 economic restructuring plan by National Assembly in November, for instance, would address some of the emerging obstacles to growth in the economy,” he added.-VNA