Vietnam imports hi-tech machinery to serve production (Photo: VNA) Although its forecast is lower than the Government’s 6.5-7 percent growthtarget for the 2021-2025 period, Fitch said newly-signed free trade agreementswill help the country expand market access while avoiding any overdependence ona single trade partner.
Vietnam plans to prioritise the importation of machinery and high-techequipment, it went on, adding that this requires an increase in skill levels,which may only improve slowly over the next decade.
Regarding infrastructure development, Vietnam plans to complete the easterncluster of the North-South Expressway, the first phase of Long ThanhInternational Airport, and over 1,700 km of coastal roads from the northernprovince of Quang Ninh to the southernmost province of Ca Mau.
Its targets posting a budget deficit of 3.7 percent of GDP, with public debt at47.5 percent of GDP in the next five years - less than the 65 percent limit.
Fitch believes this is feasible given the country’s economic potential.
Due to the impact of COVID-19, Vietnam’s GDP grew 2.9 percent last year but itwas one of only a few countries to post positive growth, which was higher thanChina’s 2.3 percent.
Meanwhile, economists from the Bank of America forecast economic growth of 9.3percent for Vietnam in 2021 - substantially higher than the 6.8 percent projected by theWorld Bank./.
VNA
