GDP growth rate is likely to maintain the pace of 7 percent next year (Photo: VNA)

Hanoi (VNA) - GDP growth rate is likely to reach a decade high of 6.9 - 7 percent in 2018 and maintain the pace of 7 percent next year, according to the National Financial Supervision Committee (NFSC).

At a workshop to announce an Overview of the Vietnam Financial Market 2018 in Hanoi on December 20, the committee’s representatives said there are also international factors supporting the domestic economy, such as positive impacts from free trade agreements that will take effect next year including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the trend of manufacturing shift as a result of the trade war.

The weakening US dollar, according to general forecast, is also another favourable factor.

However, the favourable international factors can only be optimised with stronger institutional reform, continued improvement of the business environment, more drastic economic restructuring and more intensive changes in growth model.

The committee was of the view that the inflation rate could be kept at around 4 percent provided that the adjustment of public service charges is made under close controlled. It added that the pressure on the consumer price index is not high as world prices are forecast to increase only slightly.

The NFSC affirmed that the economy’s growth would be around 6.9-7 percent this year, the highest in a decade, driven by manufacturing-processing and services.

According to the committee, the macro-economy continued to be stable, with inflation rate under 3.6 percent and major economic balances ensured.

The financial foundation continued to be consolidated, supporting economic growth. The capital supply is less dependent on the banking sector as the capital market increased its role. The banking sector’s liquidity has been ensured and interest rates and exchange rate have been kept stable.

The stock market has expanded remarkably in scale, with its capitalisation equal to 75 percent of the GDP, exceeding the target set for 2020.-VNA