In its East Asia and Pacific Economic Update report, the World bank said large developing economies in Southeast Asia, including Vietnam, will likely expand slightly faster in 2017-18, thanks to robust domestic consumption.
As a whole, the economies of developing East Asia and Pacific are projected to expand at 6.2 percent in 2017 and 6.1 percent in 2018, the report said.
Vietnam can maintain a stable growth speed over the longer term if the country continues accelerating the restructuring to support its productivity-based growth model, it noted.
Vietnam’s economy was forecast to be stable in the coming time, with GDP growth expected to expand gradually in 2017-2019 due to high domestic demand, and the country’s export-oriented processing and manufacturing activities.
According to World Bank, Vietnam’s medium-term outlook remains positive, but pronounced downside risks remain. Domestically, delayed implementation of structural and fiscal reforms could intensify macroeconomic vulnerabilities and lower potential growth. Externally, intensifying uncertainties of the global economy could dim Vietnam’s growth outlook through trade and investment channels. Dealing with vulnerability to shocks – which in recent years are mainly climate and environmental disasters - continues to be a challenge for improving household welfare, particularly in rural areas.-VNA
