World Bank: Vietnam's economy sees positive outlook

Viet Nam recently signed the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) agreements.
World Bank: Vietnam's economy sees positive outlook ảnh 1Vietnam's GDP growth in 2019 will decrease to 6.6% due to weakening external demand and tightened fiscal and credit policies, according to World Bank (Photo: Vietnam+)

Hanoi (VNA) - Viet Nam recently signed the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) agreements.

Experts from the World Bank said in this context, shifting trade and foreign direct investment attraction are expected to improve investors’ sentiment.

According to Taking Stock, the World Bank (WB)’s bi-annual economic report on Vietnam, the World Bank said Viet Nam's growth momentum slowed since the beginning of the year but the outlook remains positive.

The report was launched on July 1 in Ha Noi.

The World Bank forecast that Viet Nam's gross domestic product (GDP) growth in 2019 will decrease to 6.6 per cent due to weakening external demand and tightened fiscal and credit policies. Inflation is expected to be kept under the target of 4 per cent.

Even so, World Bank experts still noted Viet Nam's positive economic outlook, with the service industry achieving good results - a sign indicating domestic demand and private consumption are increasing steadily. Debt to gross domestic product ratio decreased from a peak of 63.7 per cent in 2016 to 58.4 per cent in 2018.

Speaking at the press conference, Sebastian Eckardt, Chief Economist of the World Bank in Viet Nam, said the recent growth slowdown was due to the impact made by external disadvantages on key economic sectors.

African swine fever outbreaks occurred and international prices declined, affecting domestic agricultural production (down to 2.2 per cent). At the same time, weak external demand slowed growth in the processing and manufacturing industries. However, basic export products maintained stable growth.

World Bank: Vietnam's economy sees positive outlook ảnh 2Sebastian Eckardt said the recent growth slowdown was due to the impact made by external disadvantages on key economic sectors (Photo: Vietnam+)

The Chief Economist of the World Bank in Viet Nam also pointed out the risk continues as global uncertainty is rising due to trade tension and financial fluctuation. External risks are also more complex when combined with domestic vulnerabilities, including delays in the consolidation of fiscal situation, reform of State-owned enterprises and the banking sector, impacted investors sentiment and growth prospects.

However, Chief Economist Sebastian Eckardt also said the US-China trade tension created opportunities for Viet Nam as investment shifted into Viet Nam. Specifically, statistics released by the World Bank showed US imports from China decreased by 1.2 per cent while the value of its imports from Viet Nam increased by 0.2 per cent, specifically in fabrics, wood, iron and steel.

As Viet Nam has just signed the Comprehensive and Progressive Agreement for Trans Pacific Partnership and the EU-Viet Nam Free Trade Agreement, Eckardt said benefits from trade shifts are expected to improve investor sentiment. In particular, the EU-Vietnam Free Trade Agreement will attract foreign investment investment and exports if Vietnam fulfills its commitments.

In addition, Mr. Ousmane Dione, Country Director of the World Bank in Viet Nam, said the country should prepare to adjust its macroeconomic policies if the above-mentioned risks become a reality and lead to a deeper-than-expected decline.

Viet Nam will also have to continue to deepen structural reforms, enhance export competitiveness, and boost trade integration through regional and multilateral agreements, said Mr. Ousmane Dione.

The Country Director of the World Bank in Viet Nam also stated that there are many potential risks ahead in the near future, so Vietnam needs to adjust its macro policies.

According to the report, the tourism industry contributed 8 percent of GDP in 2017. It surmises that the sector’s rapid expansion has brought it to a tipping point in its development, where continued growth, if not well managed, could have adverse economic, environmental, and social impacts.

The World Bank recommends certain measures for sustainable development of the tourism industry in Viet Nam such as strengthening tourism site planning, diversifying tourism products and markets, strengthening connection of local tourism value chains, improving the management quality and tourist infrastructure, and preserving cultural and environmental values, among others. /.


VNA

See more

Fuel prices surge from 3pm on June 19 (Photo: VNA)

Fuel prices surge from 3pm on June 19

The price of E5 RON92 petrol is now capped at 20,631 VND (0.79 USD) per litre, up 1,169 VND from the previous adjustment, while RON95-III costs no more than 21,244 VND per litre, up 1,277 VND.

Vietnamese Ambassador to Germany Vu Quang Minh (right) thanks Selgros Lichtenberg CEO Marco Berger for creating conditions for Vietnamese agricultural products to reach German customers (Photo: VNA)

Vietnamese Goods Day promotes Bac Giang lychees in Germany

While German consumers are familiar with Vietnamese products such as coffee, seafood, tea, and spices, many other quality items remain relatively unknown in the market. The Selgros event not only helped introduce Bac Giang lychee to German consumers but also provided them with the opportunity to experience other Vietnamese agricultural products.

An article published by Cuba’s Inter Press Service (IPS) spotlights the promising results of a unique rice cooperation model with Vietnam, as Cuba ramps up efforts to improve national food security. (Photo: Screenshot)

Vietnam–Cuba rice partnership sets new model for sustainable food security: media

The article by Cuba’s Inter Press Service detailed how Vietnamese private enterprise Agri VMA leased 1,000 ha of land in Los Palacios district, Cuba’s westernmost province of Pinar del Río, for rice cultivation over a three-year period. The project’s first harvest in 2025 recorded an impressive yield of 7.2 tonnes per hectare, far exceeding the local average of 1.6 tonnes.

Algerian delegates explore Vietnamese products showcased at the event (Photo: VNA)

Vietnam seeks to expand trade ties with Algeria

During the visit, office representatives held a working session with the Tipaza Chamber of Commerce and Industry and met with several prominent local businesses operating in key sectors including industry, agriculture, fisheries, food processing, chemicals, pharmaceuticals and plastics.

A H&M store (Photo: Reuters)

Vietnamese firms eye new opportunities with Nordic partners

A Nordic delegation to Vietnam International Sourcing 2025 in September will feature leading names in retail, consumer goods, logistics, and sustainable manufacturing, including global fashion giant H&M, offering fresh prospects for partnerships in fashion, textiles, and green supply chains.

The Lao Bao (Vietnam) – Densavan (Laos) international border gate (Photo: VNA)

'Single-Stop' procedure at Lao Bao–Densavan border gate halted

Effective from the date of signing on June 18, the decision halts procedures outlined in the 2005 Memorandum of Understanding (MoU) between the governments of Vietnam and Laos on the initial implementation of the Greater Mekong Subregion (GMS) Cross-Border Transport Facilitation Agreement at the Lao Bao–Densavan border gate.

Wind energy is expected to be a source of clean power. (Photo: VNA)

Germany invests 50 million USD in renewable energy workforce training in Vietnam

The renewable energy workforce training and development centre, invested by Germany's GEO Group, is expected to be a cornerstone in shaping Binh Dinh as a renewable energy and innovation hub in central Vietnam, meeting the growing demand for skilled technical personnel in offshore wind, solar farms, and green hydrogen projects.

ITM Semiconductor Vietnam Co., Ltd. in VSIP Industrial Park, Tu Son, Bac Ninh has always been given favorable conditions by the locality for production and business. (Photo: VNA)

Bac Ninh exerts efforts to ensure businesses thrive

To further strengthen private-sector innovation, Bac Ninh plans to accelerate administrative reforms, build a digital, service-oriented government, and develop an integrated innovation ecosystem that connects businesses with domestic and international institutions, universities, and experts.

Vietnamese Ambassador to Sweden (second, from left) Tran Van Tuan meets with representatives of H&M. (Photo: moit.gov.vn)

H&M, Nordic businesses seek suppliers in Vietnam

The participation of H&M, one of the world's largest fashion corporations, in Vietnam International Sourcing 2025 in Ho Chi Minh City in early September is considered a special highlight, opening up many cooperation opportunities for Vietnamese businesses in the fashion, textiles and sustainable supply chains.