The World Bank (WB) expects Vietnam’s economic growth to hover around6-6.2 percent in 2015, underpinned by further recovery in domesticdemand, robust private consumption and investment growth.
In its updated report on Vietnam’s recent economic developmentsreleased on July 20, the WB said the outlook for the country’s economicgrowth is positive, adding that the Purchasing Managers’ Index (PMI)computed by HSBC has remained above 50 for 22 continuous months whilethe consumer confidence index stayed at 140.2 in May, well above itslong-term average of 135.
Despite recent looseningof monetary policy, this year’s inflation will remain low, fluctuatingat 2.5 percent on account of low global energy and food prices, the WBsaid.
The fiscal deficit is forecasted to beadjusted by cutting spending to avoid further increases in public debt.The bank also expects the trade surplus to narrow significantly in 2015due to a combination of weakening exports and sustained import growthstoked by stronger domestic economic activities and investment demands.
Meanwhile, emerging trade agreements will provideopportunities for Vietnamese enterprises to attract more foreigninvestment, and diversify and promote trade through reaching larger andricher markets, the biannual report says.
However,WB Senior Economist Sebastian Eckardt underlined certain problems inVietnam’s economic growth, including the rapid increase of public debtin recent years and weakening external trade balance causing the currentaccount to move into a deficit in the first quarter of 2015.
Progress on structural reforms has been mixed, especially with regardsto the restructuring of State-owned enterprises (SOEs) and reform ofthe banking sector. SOE equitisation progress has slowed down in 2015,with only 29 SOEs being equitised of the set target of 289 SOEs thisyear.
Lead Economist of the WB Office in Vietnam,Sandeep Mahajan said, despite banking reform advances, especially inmergers and acquisitions, efforts to resolve bad debts have beenhampered by the absence of an enabling legal framework. Meanwhile thecapital base of the Vietnam Asset Management Company is too small toactually resolve bad debts.
In a section onVietnam’s labour market, the WB report says the job landscape in thecountry has shifted dramatically over the last 25 years. Jobs in Vietnamwere once characterised entirely by family farming, collectives andSOEs. Over time, employment has shifted towards industrial productionand services, household businesses outside agriculture, and privatedomestic and foreign-owned firms.
WB experts alsourged the country to boost labour productivity to improve itscompetitiveness amidst the context of international integration.-VNA
In its updated report on Vietnam’s recent economic developmentsreleased on July 20, the WB said the outlook for the country’s economicgrowth is positive, adding that the Purchasing Managers’ Index (PMI)computed by HSBC has remained above 50 for 22 continuous months whilethe consumer confidence index stayed at 140.2 in May, well above itslong-term average of 135.
Despite recent looseningof monetary policy, this year’s inflation will remain low, fluctuatingat 2.5 percent on account of low global energy and food prices, the WBsaid.
The fiscal deficit is forecasted to beadjusted by cutting spending to avoid further increases in public debt.The bank also expects the trade surplus to narrow significantly in 2015due to a combination of weakening exports and sustained import growthstoked by stronger domestic economic activities and investment demands.
Meanwhile, emerging trade agreements will provideopportunities for Vietnamese enterprises to attract more foreigninvestment, and diversify and promote trade through reaching larger andricher markets, the biannual report says.
However,WB Senior Economist Sebastian Eckardt underlined certain problems inVietnam’s economic growth, including the rapid increase of public debtin recent years and weakening external trade balance causing the currentaccount to move into a deficit in the first quarter of 2015.
Progress on structural reforms has been mixed, especially with regardsto the restructuring of State-owned enterprises (SOEs) and reform ofthe banking sector. SOE equitisation progress has slowed down in 2015,with only 29 SOEs being equitised of the set target of 289 SOEs thisyear.
Lead Economist of the WB Office in Vietnam,Sandeep Mahajan said, despite banking reform advances, especially inmergers and acquisitions, efforts to resolve bad debts have beenhampered by the absence of an enabling legal framework. Meanwhile thecapital base of the Vietnam Asset Management Company is too small toactually resolve bad debts.
In a section onVietnam’s labour market, the WB report says the job landscape in thecountry has shifted dramatically over the last 25 years. Jobs in Vietnamwere once characterised entirely by family farming, collectives andSOEs. Over time, employment has shifted towards industrial productionand services, household businesses outside agriculture, and privatedomestic and foreign-owned firms.
WB experts alsourged the country to boost labour productivity to improve itscompetitiveness amidst the context of international integration.-VNA
