Vietnam’s macroeconomic stability continues to improve but itseconomic growth remains modest and fails to match potential, said theWorld Bank (WB) in a report released on July 8.
According to the WB Update on Vietnam’s Economic Development,Vietnam’s economy will grow 5.4 percent this year thanks to stableforeign direct investment inflows and strong manufacturing export.
However, the domestic demand remains weak as the private sector’sconfidence is not strong enough and commercial banks’ bad debts arestill high, it said, adding that Vietnam’s economy is facingnumerous challenges in competitiveness.
The bankemphasised the need for more attention to the restructuring ofState-owned enterprises and the banking system while removing barriersfor private investment.
Speaking at the launchceremony, WB Country Director in Vietnam Victoria Kwakwa said thatVietnam’s projected 5.4 percent economic growth is still higher thanthat of many countries in the region and the world. However, it does notmatch the country’s potential.
In the short term, Vietnam’s growth will continue at a modest pace due to weak domestic demand, she forecast.
Regarding the possible impact of China’s illegal placement of its oilrig in Vietnam’s waters on the country’s economic growth prospect, theWB representative said that trade between Vietnam and China is stillnormal although the number of Chinese visitors to Vietnam has dropped inrecent time.
The Vietnamese Government has takentimely measures to assist businesses affected by disturbances causedduring workers’ rallies against China ’s violations of Vietnam’ssovereignty. This shows that the Government is really attentive toensuring the safety for foreign investors, she affirmed.-VNA
According to the WB Update on Vietnam’s Economic Development,Vietnam’s economy will grow 5.4 percent this year thanks to stableforeign direct investment inflows and strong manufacturing export.
However, the domestic demand remains weak as the private sector’sconfidence is not strong enough and commercial banks’ bad debts arestill high, it said, adding that Vietnam’s economy is facingnumerous challenges in competitiveness.
The bankemphasised the need for more attention to the restructuring ofState-owned enterprises and the banking system while removing barriersfor private investment.
Speaking at the launchceremony, WB Country Director in Vietnam Victoria Kwakwa said thatVietnam’s projected 5.4 percent economic growth is still higher thanthat of many countries in the region and the world. However, it does notmatch the country’s potential.
In the short term, Vietnam’s growth will continue at a modest pace due to weak domestic demand, she forecast.
Regarding the possible impact of China’s illegal placement of its oilrig in Vietnam’s waters on the country’s economic growth prospect, theWB representative said that trade between Vietnam and China is stillnormal although the number of Chinese visitors to Vietnam has dropped inrecent time.
The Vietnamese Government has takentimely measures to assist businesses affected by disturbances causedduring workers’ rallies against China ’s violations of Vietnam’ssovereignty. This shows that the Government is really attentive toensuring the safety for foreign investors, she affirmed.-VNA
