HSBC have recently trimmed Vietnam’s 2021 growth forecast from 6.6 per cent to 6.1 per cent, reflecting the impact of the recent outbreak. That said, once Vietnam is able to contain Covid-19, it should regain its momentum quickly.
The growth rate of Vietnam economy in 2018 was raised to 6.8 per cent by the World Bank, making Vietnam become one of the few countries having enhanced growth prospects.
In spite of the general positive medium-term prospect, significant challenges still remain to hover Vietnam's attempts on securing a sustainable growth this year.
Despite many breakthroughs in 2017, Vietnam economy outlook is still forecasted to face many problems in 2018.
Although the Foreign Direct Investment (FDI) segment has significantly contributed to the development of Vietnam economy, many of its drawbacks must be taken into consideration.
The ability of determining strengths and priorities that Vietnam economy has had is outstanding compared to other countries; However, when it comes to policy enforcement, there is array of problems including lack of transparency, loose and overlapping legal framework.
'SOEs reform will be the key in driving the evolution of the Vietnam economy', according to a high-calibre officer of Japan headquartered Sumimoto Mitsui Banking Corporation.
This is the right time for Vietnam economy to accelerate and take advantages of the world’s advanced technology and science to develop.
Vietnam is highly prone to natural disasters costing the country an average of up to 1.5 per cent of GDP and 300 lives annually.
Easing restriction on labor migration can boost workers’ welfare and deepen regional economic integration, according to the World Bank's report on “Migrating to opportunity” just released.
“Despite the drop in mining and oil output, Viet Nam’s economy continues to perform well, driven by its twin engines of export-orientated manufacturing and rising domestic consumption,” said Eric Sidgwick, The Asian Development Bank (ADB)'s Country Director for Viet Nam.
