Goods are loaded at the Hai Phong International Container Terminal in the northern city of Hai Phong (Photo: VNA) Hanoi (VNA) – The Asian Development Bank (ADB)has predicted that Vietnam’s economy will maintain healthy growth in 2019 and2020 at 6.8 percent and 6.7 percent, respectively, after growing robustly at7.1 percent last year.
In its Asian Development Outlook 2019 Updatelaunched on September 25, ADB noted that while Vietnam’s gross domestic productgrowth moderated in the first half of 2019, it will remain resilient this yearand next year despite a weaker external environment.
Inflation forecasts are revised down to 3percent from 3.5 percent for 2019 and 3.5 percent from 3.8 percent for 2020.
According to ADB, the recent signing of a freetrade agreement with the European Union and the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership promises to further open market accessfor trade and investment. A recent amendment to the Public Investment Lawshould improve public investment by accelerating processes, simplifyingprocedures and enabling faster disbursement of public investment.
While retaining the growth outlook for Vietnamfor this year and the next, the report also highlighted significant risks tothe forecast. Further escalation of the US-China trade tension and continuingglobal economic slowdown could shrink global trade, which will adversely impactthe country’s trade performance and economic growth.
ADB Country Director for Vietnam Eric Sidgwicksaid despite a slowdown in export growth due to the escalation of the tradeconflict between the US and China and the consequent downturn in global trade,“the economy remains healthy thanks to continued strength in domestic demandand sustained inflows of foreign direct investment.”
“Prospects for domestic consumption continues tobe positive, supported by rising incomes, buoyant employment, and moderateinflation,” he added./.
VNA
