Workers examine electronic components at the factory of the Young Poong Electronics VINA Co. Ltd in Binh Xuyen II Industrial Park, Vinh Phuc province (Photo: VNA) The International Monetary Fund (IMF) expects Vietnam’s economy to grow 6.5 percent in2021 despite some economic scarring.
In its2020 Article IV Consultation report with Vietnam, the IMF said the country’s growth is projected to strengthen to 6.5percent, as normalisation of economic activity continues, businesses recover,and private consumption and business investment rebound.
Per the report, manufacturingand retail sales are expected to lead the recovery, while the travel andhospitality services will remain subdued. Net exports will continue to contributepositively to growth as external demand picks up.
Economic scarringdue to disruptions to domestic activity and the labour market will temporarilyweigh on potential growth as labour re-allocation gradually takes place, andcapital stays idle in the hardest-hit sectors.
The StandardChartered Bank has forecast Vietnam’s economy will grow at 7.8 percent thisyear with manufacturing driving the revival.
Meanwhile, a preliminaryassessment by the ASEAN 3 Macroeconomic Research Office (AMRO) said thenation’s GDP growth will rebound to 7 percent this year, driven by a recoveryin external demand, a resilient domestic economy, and increased productioncapacity.
Market researcher Fitch Solutions expects that Vietnam’seconomy will grow 6.5 percent each year over the course of the next 10 years asthe Government diversifies export markets and improves infrastructure./.
VNA
