The Economist’s Intelligence Unit, an offshoot of the UK ’s Economistmagazine, has lifted its forecast of Vietnam ’s GDP growth rate in2010 to 6.4 percent, up from 6.2 percent in its previous forecast.
Therecovery in the global economy promises brighter prospects forVietnam ’s export sector and the recent rise in imports suggests thatconsumers and investors demands are growing.
However, althougheconomic growth has risen from 5.4 percent in 2009, it will not returnto the heady annual rates of more than 8 percent, that were recordedbefore the global recession.
According to the EIU, on the supplyside, growth in the industrial sector will accelerate in the 2010-11period, mainly driven by the foreign-invested sector.
In thefirst six months of 2010 the industrial value grew by 13.6 percent yearon year, with the foreign-invested sector posting a growth of 17percent. Nevertheless, the growth in demand for Vietnam 'smanufactured exports will remain sluggish over the next two yearscompared to the period before the global recession.
The EIUunderlined that although foreign investors remain positive aboutVietnam 's long-term prospects, the growth of investment inmanufacturing will remain relatively low because of last year’s crisis.
Afterreceiving a boost in 2009 from low interest rates and a reduction inthe cost of input materials, Vietnam ’s construction sector has grownrapidly, at 11.5 percent, in the second quarter of 2010.
Theconstruction industry will be helped in 2010-11 by the State investingin infrastructure projects, as well as the expansion of office space.Growth in the services sector, which was the engine that drove economicexpansion in 2009, will also increase, with retail and financialservices making major contributions.
The EIU also expectsVietnam ’s consumer price index to rise from 7 percent in 2009 to anannual average of 9.2 percent in the 2010-2011 period. However it warnedthat a rising inflation rate and relatively high unemployment couldrestrict the growth of future consumer spending.
The World Bankrecently forecasted that Vietnam 's GDP could expand by 7 percent in2010, overtaking the government's target of 6.5 percent./.
Therecovery in the global economy promises brighter prospects forVietnam ’s export sector and the recent rise in imports suggests thatconsumers and investors demands are growing.
However, althougheconomic growth has risen from 5.4 percent in 2009, it will not returnto the heady annual rates of more than 8 percent, that were recordedbefore the global recession.
According to the EIU, on the supplyside, growth in the industrial sector will accelerate in the 2010-11period, mainly driven by the foreign-invested sector.
In thefirst six months of 2010 the industrial value grew by 13.6 percent yearon year, with the foreign-invested sector posting a growth of 17percent. Nevertheless, the growth in demand for Vietnam 'smanufactured exports will remain sluggish over the next two yearscompared to the period before the global recession.
The EIUunderlined that although foreign investors remain positive aboutVietnam 's long-term prospects, the growth of investment inmanufacturing will remain relatively low because of last year’s crisis.
Afterreceiving a boost in 2009 from low interest rates and a reduction inthe cost of input materials, Vietnam ’s construction sector has grownrapidly, at 11.5 percent, in the second quarter of 2010.
Theconstruction industry will be helped in 2010-11 by the State investingin infrastructure projects, as well as the expansion of office space.Growth in the services sector, which was the engine that drove economicexpansion in 2009, will also increase, with retail and financialservices making major contributions.
The EIU also expectsVietnam ’s consumer price index to rise from 7 percent in 2009 to anannual average of 9.2 percent in the 2010-2011 period. However it warnedthat a rising inflation rate and relatively high unemployment couldrestrict the growth of future consumer spending.
The World Bankrecently forecasted that Vietnam 's GDP could expand by 7 percent in2010, overtaking the government's target of 6.5 percent./.
