Vietnam’s economy continues to perform well despite several setbacks, said the Asian Development Bank (ADB) in its Asian Development Outlook Update 2017 report (Photo: VNA)Hanoi (VNA) – Vietnam’s economy continues toperform well despite several setbacks, said the Asian Development Bank (ADB) inits Asian Development Outlook Update (ADOU) 2017 report launched in Hanoi onSeptember 26.
“Despite the drop in mining and oil output, Vietnam’s economycontinues to perform well, driven by its twin engines of export-orientatedmanufacturing and rising domestic consumption”, said Eric Sidgwick, ADB CountryDirector for Vietnam.
“Manufacturing expanded by 10.5 percent in the first half of the year as newforeign-invested factories ramped up production, while the services sectorcontinued to pick up steam as a result of rising retail trade, growing banklending and a 30 percent jump in tourism arrivals.”
Vietnam’s economic growth is expected to rise in the secondhalf of the year, buoyed by further increases in foreign direct investment andexports, domestic credit growth, a further recovery in agriculture from the2016 drought and accelerating disbursements of capital expenditure on nationalinfrastructure programmes.
The report stressed that while Vietnam’s economy isperforming reasonably well against a challenging back-drop, several issues willneed to be addressed to ensure growth remains sustainable.
It forecasts adownward revision in Vietnam’s economic growth to 6.3 percent in 2017, and 6.5percent in 2018 as a result of an 8 percent contraction in mining and oiloutput in the first half of the year.
Economic experts said while recent progress intrimming the budget deficit is commendable, it has also led to a drop incapital spending which if not rebalanced could erode Vietnam’s long-term growthperformance. For Vietnam’s fiscal consolidation to be ‘growth-friendly’, theauthorities may usefully focus on adopting additional taxation measures whiletrimming non-core public expenditures such as administrative expenses whichhave crowded-out infrastructure in recent years.-VNA
“Despite the drop in mining and oil output, Vietnam’s economycontinues to perform well, driven by its twin engines of export-orientatedmanufacturing and rising domestic consumption”, said Eric Sidgwick, ADB CountryDirector for Vietnam.
“Manufacturing expanded by 10.5 percent in the first half of the year as newforeign-invested factories ramped up production, while the services sectorcontinued to pick up steam as a result of rising retail trade, growing banklending and a 30 percent jump in tourism arrivals.”
Vietnam’s economic growth is expected to rise in the secondhalf of the year, buoyed by further increases in foreign direct investment andexports, domestic credit growth, a further recovery in agriculture from the2016 drought and accelerating disbursements of capital expenditure on nationalinfrastructure programmes.
The report stressed that while Vietnam’s economy isperforming reasonably well against a challenging back-drop, several issues willneed to be addressed to ensure growth remains sustainable.
It forecasts adownward revision in Vietnam’s economic growth to 6.3 percent in 2017, and 6.5percent in 2018 as a result of an 8 percent contraction in mining and oiloutput in the first half of the year.
Economic experts said while recent progress intrimming the budget deficit is commendable, it has also led to a drop incapital spending which if not rebalanced could erode Vietnam’s long-term growthperformance. For Vietnam’s fiscal consolidation to be ‘growth-friendly’, theauthorities may usefully focus on adopting additional taxation measures whiletrimming non-core public expenditures such as administrative expenses whichhave crowded-out infrastructure in recent years.-VNA
VNA
