World Bank increases Vietnam’s forecasted GDP growth
The World Bank (WB) has upgraded its previous growth forecast for Vietnam, from 6.5 to 6.8%. The projected growth is identical to the result Vietnam achieved in the previous year - the fastest annual GDP growth in the last 10 years.
WB has explained the new forecast is based on positive prospects for the expansion of sectors such as manufacturing and agriculture, as well as due to continued inflow of FDI.
Vietnam has reached another milestone, with the fastest quarterly GDP growth in the previous 10 years, at 7.38% during Q1, 2018.
Vietnam’s Prime Minister Nguyen Xuan Phuc in a recent interview for the Financial Times has raised hopes that the GDP growth results of 2017 will be exceeded in 2018, and stay at a similar level until 2020. The government plans to enable these results by creating economic conditions where private sector can thrive. “In order to attain this, we will try to maintain favourable conditions for businesses, healthy environment for businesses and further international integration, especially support for private sector and nurture innovation so that we can enhance GDP growth for many years to come.”
For 2019 and 2020, WB predicts slightly slower growth pace of 6.6 and 6.5%, respectively.