GDP growth rate is likely to maintain the pace of 7 percent next year (Photo: VNA)Hanoi (VNA) - GDP growth rate is likely to reach a decadehigh of 6.9 - 7 percent in 2018 and maintain the pace of 7 percent next year, accordingto the National Financial SupervisionCommittee (NFSC).
At a workshop to announce an Overview of the VietnamFinancial Market 2018 in Hanoi on December 20, the committee’s representativessaid there are also international factors supporting the domestic economy, suchas positive impacts from free trade agreements that will take effect next year includingthe Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)and the trend of manufacturing shift as a result of the trade war.
The weakening US dollar, according to general forecast, is also anotherfavourable factor.
However, the favourable international factors can only be optimised with strongerinstitutional reform, continued improvement of the business environment, moredrastic economic restructuring and more intensive changes in growth model.
The committee was of the view that the inflation rate could be kept ataround 4 percent provided that the adjustment of public service charges is madeunder close controlled. It added that the pressure on the consumer price indexis not high as world prices are forecast to increase only slightly.
The NFSC affirmed that the economy’s growth would be around 6.9-7 percentthis year, the highest in a decade, driven by manufacturing-processing andservices.
According to the committee, the macro-economy continued to be stable, withinflation rate under 3.6 percent and major economic balances ensured.
The financial foundation continued to be consolidated, supportingeconomic growth. The capital supply is less dependent on the banking sector asthe capital market increased its role. The banking sector’s liquidity has beenensured and interest rates and exchange rate have been kept stable.
The stock market has expanded remarkably in scale, with itscapitalisation equal to 75 percent of the GDP, exceeding the target set for2020.-VNA
