Auditing firm Ernst & Young predicts in its forecast about rapid-growth markets that economic activity in Vietnam remains subdued but is set to pick up this year and in 2014.

This year, the country’s Gross Domestic Product (GDP) is expected to be 5.5 percent and the consumption price index (CPI) 7.8 percent.

In 2015, the country’s GDP is estimated to climb to 7.1 percent and the CPI to fall to a growth of 4.8 percent.

“The near 7 percent growth trend can be regained by 2014, as export markets recover, if banks become more stable and if rule changes are enacted for planned foreign direct investment,” Ernst &Young said in its report.

“Import substitution will continue to contain the trade deficit. Despite consumption picking up as inflation subsides. But competition from other low-cost locations is a downside growth risk,” it added.

In its forecast, Ernst& Young said that China continued to move up the value chain, creating many development chances for other Asian countries, including Vietnam.

Vietnam is one of 25 rapid growth markets cited in the report that have shown improvement thanks to an increase in trade and demand for commodities.

Ernst & Young said that these markets had started to regain momentum.-VNA