Fibre2Fashion cited the International Monetary Fund and the Singapore-based DBS Bank as saying despite a slow growth amid global economic headwinds, Vietnam is performing better than most countries and is still an attractive destination for foreign direct investment in the manufacturing sector.
In an assessment of Vietnam’s economic situation in the first half of this year, both said a gradual easing of monetary policies, reducing taxes, and expanding public spending have helped mitigate the impact of headwinds.
The IMF noted that Vietnam's economic growth would recover in H2 while inflation is likely to be under control below the State Bank of Vietnam's 4.5% target.
Meanwhile, Standards Chartered expected the economy to grow 7% in H2.
The country's economic stability and openness are key drivers for its promising mid-term outlook, a continued recovery of tourist arrivals will help strengthen the services balance, while maintaining investment inflows might need an enhanced global environment and concerted efforts from the Vietnamese Government, the bank said./.
