The Vietnamese economy is set to grow by 6 percent this year, accordingto the East Asia and Pacific Economic Update released on April 13 by theWorld Bank.
The rate is 0.5 percent higher than the bank's projection last October.
After some turbulence in mid-2014, Vietnam's economic performance rebounded and year-end growth exceeded expectations.
Atthe heart of this, comeback was stronger macro-economic fundamentals,solid foreign direct investment (FDI) in manufacturing and exports fromthe sector, and key business climate improvements.
The reportsaid inflation will be moderate this year because of low global energyand food prices, and a gradual recovery in domestic demand.
Itsaid strong exports and robust remittances would keep the currentaccount in surplus, albeit at a diminished level as stronger domesticeconomic activity stoked import growth.
Fiscal deficit woulddecline to under four percent of GDP by 2017, underscoring the need forfiscal consolidation over the medium term, together with a credible planto strengthen the finances of State-owned enterprises (SOEs) and theState-owned banking sector to preserve public-debt sustainability.
Althougheconomic growth was improving, the World Bank warned that Vietnam wasstill performing below its potential, due to slow-moving structuralreforms, especially in the banking sector and SOEs.
It said the country still faced risks in its medium-term outlook, which remained mostly on the downside.
Forexample, weak global prices and other agricultural products mightadversely affect rural incomes and consumption and widen the urban-ruralgap. Falling oil prices could also put additional pressure on budgetrevenues.
Global growth remained sluggish and subject to much uncertainty, and might dampen Vietnam's export and FDI inflows.
The report also spoke of opportunities for Vietnam.
It said emerging trade agreements would provide opportunities for enterprises to reach out to bigger and richer markets.
Besides,domestic reforms, including medium-term fiscal consolidation, furtherimprovements in the business climate and more credible and visible SOEand banking sector reforms would send important signals to domestic andinternational investors and lay the groundwork for stronger futuregrowth, the report said.-VNA
The rate is 0.5 percent higher than the bank's projection last October.
After some turbulence in mid-2014, Vietnam's economic performance rebounded and year-end growth exceeded expectations.
Atthe heart of this, comeback was stronger macro-economic fundamentals,solid foreign direct investment (FDI) in manufacturing and exports fromthe sector, and key business climate improvements.
The reportsaid inflation will be moderate this year because of low global energyand food prices, and a gradual recovery in domestic demand.
Itsaid strong exports and robust remittances would keep the currentaccount in surplus, albeit at a diminished level as stronger domesticeconomic activity stoked import growth.
Fiscal deficit woulddecline to under four percent of GDP by 2017, underscoring the need forfiscal consolidation over the medium term, together with a credible planto strengthen the finances of State-owned enterprises (SOEs) and theState-owned banking sector to preserve public-debt sustainability.
Althougheconomic growth was improving, the World Bank warned that Vietnam wasstill performing below its potential, due to slow-moving structuralreforms, especially in the banking sector and SOEs.
It said the country still faced risks in its medium-term outlook, which remained mostly on the downside.
Forexample, weak global prices and other agricultural products mightadversely affect rural incomes and consumption and widen the urban-ruralgap. Falling oil prices could also put additional pressure on budgetrevenues.
Global growth remained sluggish and subject to much uncertainty, and might dampen Vietnam's export and FDI inflows.
The report also spoke of opportunities for Vietnam.
It said emerging trade agreements would provide opportunities for enterprises to reach out to bigger and richer markets.
Besides,domestic reforms, including medium-term fiscal consolidation, furtherimprovements in the business climate and more credible and visible SOEand banking sector reforms would send important signals to domestic andinternational investors and lay the groundwork for stronger futuregrowth, the report said.-VNA
