WB: Vietnam’s GDP Growth Outpaces Twice Global Average
Vietnam’s economic growth is projected to moderate slightly to 6.5% on average between 2018 and 2020, driven by robust agricultural production and strong export-oriented manufacturing, the World Bank (WB) has said in its January 2018 Global Economic Prospects.
Meanwhile, global growth to forecast to edge up to 3.1% in 2018 after a much stronger-than-expected 2017, as the recovery in investment, manufacturing, and trade continues, and as commodity-exporting developing economies benefit from firming commodity prices.
In the East Asia and Pacific region, Vietnam’s economic expansion in 2018 will likely be higher than that of China (6.4%), but lower than that of Cambodia (6.9%), Laos (6.6%), Myanmar (6.7%) and the Philippines (6.7%).
Together with India and Indonesia, Vietnam remains an appealing destination for FDI flows, supported by a robust growth outlook and policy efforts to attract foreign investment.
The bank noted that real credit growth remained high in China, the Philippines, and Vietnam.
In a November 2017 update, the bank noted that despite progress in resolving non-performing loans in Vietnam, risks remain, including the lack of robust capital buffers in some banks, especially amidst rapid credit growth.
Sebastian Eckardt, the World Bank lead economist for Vietnam, highlighted that Vietnam’s exports have outperformed regional peers and will be a driver for the Vietnamese economy in the years to come.
Source: BizLIVE