An electronic device production factory (Photo: VNA)Hanoi (VNA) – Vietnam’s medium-term outlookremains favourable with GDP expected to expand by 6 percent this year,according to the World Bank (WB)’s Taking Stock report.
The WB said, despite a fragile globalenvironment, Vietnam’s economy remains resilient, thanks to robust domesticdemand and export-oriented manufacturing.
The report, a biannual review of the country’seconomic performance, found that Vietnam’s growth slowed to 5.9 percent duringthe first three quarters of the year, mainly because of a severe drought thathas reduced agricultural output, cut down on oil production and slowed externaldemand.
The fundamental drivers of growth – resilientdomestic demand and export oriented manufacturing – remain in force.
Vietnam’s growth was accompanied by lowinflation and widening current account surplus. And despite price hikes forhealth and education services, core inflation remains low and headlineinflation is expected to stay below the official target of 5 percent.
“Vietnam’s macroeconomic stability creates afavorable environment for policy makers to accelerate structural reforms, whichis crucial as the country moves toward a more productivity-led growthmodel,” said WB Country Director for Vietnam Ousmane Dione.
“The adoption of the 2016-2020 economicrestructuring plan by National Assembly in November, for instance, wouldaddress some of the emerging obstacles to growth in the economy,” he added.-VNA
VNA
