ADB lifts economic growth forecasts for Vietnam

Sep 22nd at 13:47
22-09-2015 13:47:15+07:00

ADB lifts economic growth forecasts for Vietnam

With Vietnam’s economic expansion expected to exceed expectations for 2015 and 2016, the Asian Development Bank (ADB) has raised its growth forecasts for the country from the original outlooks made earlier this year.

 

The ADB had forecast Vietnam’s gross domestic product to expand by 6.1 percent in 2015 and 6.2 percent in 2016, but the figures have been revised to 6.5 percent and 6.6 percent, respectively, according the latest Asian Development Outlook Update 2015.

Sensible pro-growth monetary and fiscal policies are helping to restore macroeconomic stability, and recent policy reforms are boosting business confidence, the ADB said at the press meeting to release its flagship report in Hanoi on Tuesday.

“Vietnam’s improving economic growth performance is being driven by a number of factors, particularly stronger output from the manufacturing sector, rising consumer spending, and macroeconomic stability,” ADB country director for Vietnam Eric Sidgwick said at the meeting.

The report notes that manufacturing output growth is particularly strong, increasing by 9.9 percent in the first half of the year as foreign-invested factories spur the production of goods for export.

This growth is likely to continue with foreign direct investment disbursements reaching record levels in the first half of the year, according to the ADB.

Construction accelerated to grow by 6.6 percent during the first six months of 2015 owing to a modest recovery in the property market and public investment in infrastructure.

The report underlines that the Vietnamese financial sector also “appears to be picking up momentum” after some challenging years, with credit growth set to surpass official targets during 2015.

Government policy has also been aided by lower global commodity prices which have helped to contain price growth, lift disposable incomes and lower business costs, according to the report.

Despite these achievements, Vietnam does face some growing macroeconomic challenges, the ADB warned.

“Slowing economic growth in China, one of Vietnam’s largest trade and investment partners, may dampen trade prospects while continued low global commodity prices will reduce export earnings for key sectors like oil and agriculture,” the report remarks.

In order to mitigate such challenges, it will be vital for the country to “continue to deepen structural and financial sector reforms, [increase] productivity growth and [boost] Vietnam’s international competitiveness,” Sidgwick advised.

The ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

Established in 1966, it is owned by 67 members, 48 of which are from the region.

In 2014, ADB assistance totaled US$22.9 billion, including the co-financing of $9.2 billion.

tuoitrenews



NEWS SAME CATEGORY

Ride-sharing apps vie to replace private car ownership in Vietnam

A young, tech-savvy population short on cars but big on smartphones is driving double-digit growth for ride-hailing apps Uber and GrabTaxi in Vietnam, and inspiring...

UK firm seeks partners for one dollar smartphone project in Vietnam

A UK firm is searching for Vietnamese partners to market a smartphone that costs only one U.S. dollar, but it would be a long way to go for such an idea to be...

VN’s 10 key export items listed

Vietnam’s total export and import turnover over the past eight months of the year exceeded US$216.76 billion, a year-on-year increase of 12.9%, according to the...

Vietnam Airlines receives second Airbus A350-XWB

The national flag carrier Vietnam Airlines has received the second of four Airbus A350-XWB aircraft scheduled to join the carrier’s fleet in 2015.

HanesBrands Vietnam to raise investment capital

HanesBrands, the US’ manufacturer and marketer of everyday apparel essentials, aims to raise its total investment in Vietnam to nearly $55 million by the end of...

BASF and Nippon renovate schools in Mekong Delta

BASF and Nippon collaborated to revamp schools in needy areas of Vietnam.

Provinces become more selective about new foreign investment projects

More and more provinces have been turning down foreign direct investment (FDI) projects that use outdated technologies or cause pollution.

VN agricultural export to China faces challenges

As Vietnamese agricultural export is facing challenges in Chinese market, businesses should focus on technological innovation, product quality improvement and price...

30% of Vietnamese to shop online by 2020

At a meeting on September 18 to launch Vietnam’s e-commerce policy, Mr. Tran Huu Linh, Director General of the Vietnam E-commerce and Information Technology Agency...

VN optimistic about economic growth, even if oil prices fall

The Vietnamese economy is projected to continue recovery in the four remaining months of the year, bolstered by Government efforts to maintain macro-economic...


MOST READ


Back To Top