The World Bank predicts Vietnam’s GDP growth this year at 6.8 percent in its East Asia Pacific Economic Update released on October 4, compared to the 6.5-percent projection last April.

 

 

According to the report, Vietnam’s economy continues to perform well, propelled by the sustained global recovery and continued domestic reforms. Robust growth is boosting job creation and income growth, leading to broad-based welfare gains and poverty reduction.

Despite improved short-term prospects, external and domestic risks and longer-term challenges remain. These include risks of global financial volatility and rising protectionism as well as domestic vulnerabilities associated with remaining banking sector weaknesses, elevated public debt and limited fiscal space, and subdued productivity growth.