APD | ADB expects Vietnam’s strong growth this year

By APD writer Alice

Hanoi, April 8 (APD) - Vietnam’s economic growth rate is expected to reach 6.8 percent this year, while the inflation rate remains the same as that of 2018, predicted the Asian Development Bank in its latest economic outlook’s release.

ADB show optimism toward Vietnam’s inflation control capacity as it forecasts that the country’s inflation rate will stay the same as 2018 at 3.5 percent and slightly increase to 3.8 percent in 2020. ADB also acknowledged that the recent fuel and electricity price hikes may not greatly impact to inflation in long-term.

The bank also pointed out numerous factors affecting the economic growth, including US-China trade war and the ratification of the Comprehensive Progressive Trans-Pacific Partnership. According to the organization, manufacturing and private consumption sectors will be the next growth engine for Vietnam this year.

It also mentioned areas requiring improvements, such as the lackluster progress in state-owned enterprises’ reform and high dependence on exports while export revenues are mostly from FDI firms. 

(ASIA PACIFIC DAILY)