The International Monetary Fund (IMF) has said Vietnam’s economic growth is projected to slow to 6.5 percent in 2019 from a 10-year high of 7.1 percent in 2018, reflecting weakening external conditions.

The IMF said trade tensions and volatility affected Vietnam in 2018, but the economy had remained resilient, fueled by growth in middle class incomes and consumption, a strong harvest and surging manufacturing.

The strong economic momentum is expected to continue in 2019, aided by competitive labour costs and other strong fundamentals, including a diversified trade structure, and recently signed free trade agreements which are spurring reforms, according to the IMF.

The IMF experts called on the Government to push ahead with reforms to reduce remaining barriers to investment, including improving access to land and credit, which would boost private investment and raise worker productivity and growth.-VNA