Vietnam’s GDP set to grow 6.7% in 2016: ADB
Vietnam’s GDP set to grow 6.7% in 2016: ADB
The Asian Development Bank (ADB) has set a positive economic growth forecast, despite challenges, for Vietnam this year.
The Southeast Asian country is projected to sustain 6.7 percent growth in 2016 before the pace moderates to 6.5 percent the following year, according to ADB’s Asian Development Outlook 2016 report released on Wednesday.
In its previous outlook report, the ADB also forecast 2015 growth for Vietnam at 6.7 percent, while the economy actually expanded by 6.68 percent, according to official government data.
The economic outlook for Vietnam in the next few years remains positive, even though challenges still linger, ADB country director for Vietnam Eric Sidgwick said at a ceremony to unveil the report in Hanoi.
It is advised that Vietnam try harder to improve productivity and support domestic businesses in their integration into the global value chain, according to the ADB director.
The state-owned enterprise reform should also be boosted to mitigate the negative impacts these companies have on the economy and its competitiveness.
The ADB also recommends that Vietnam continue enacting measures to tackle the bad debt problem of the banking sector.
Sidgwick also revealed at the meeting that the Manila-based lender has plans to cease preferential loans for Vietnam starting in January 2019.
He added, however, that it is only a tentative plan, and the final decision depends on a consensus to be reached by the ADB shareholders.
The latest Asian Development Outlook also slashed the ADB economic growth forecast for Asia to 5.7 percent in both 2016 and 2017, from the 6.0 percent stated in the December outlook report.
The region, which groups 45 countries in the Asia Pacific, grew 5.9 percent last year, according to Reuters.
