Vietnam’s economic growth is expected to slow down due to a resurgence of Covid-19 that has tightened the labor market, lowered industrial output, and disrupted agricultural value chains, according to latest report released by the Asian Development Bank (ADB).
While domestic think tanks in Vietnam show optimism on the local economic growth and forecast a better performance than the government’s target, international organisations are more cautious with lower projections.
Vietnam's economic growth is expected to slow down to 6.7 per cent next year in the context of weaker external environment.
Outlook of Vietnam's economic growth in 2019 will be a picture mixing the grey shade of things to look out and the pink shade of things to look forward to, according to influential economist Dr. Vo Tri Thanh.
Vietnam would experience strong GDP growth this year and next, as it continues to attract FDI inflows and expand their manufacturing base, according to the head of Asia research at Australia & New Zealand Banking Group Ltd.
Vietnam's economy is forecasted to expand by 6.8 percent in 2018 before moderating to 6.6 percent in 2019 as capacity constraints become more binding, according to World Bank.
ADB projects Vietnam’s economic growth to exceed 7 per cent in 2018, led by robust export growth, rising domestic consumption, and strong investment fueled by continued foreign direct investment.
Banking sector, an important part of the whole financial system, plays a vital role in facilitating momentum for Vietnam’s economic growth but rising concerns are hanging over due to many incidents and scandals related to banks this year.
The economic growth target of 6.7 per cent in 2017 is mainly dependent on the recovery of the agricultural and manufacturing sectors.
Notwithstanding the question marks over Vietnam’s economic growth, private equity firms continue to remain bullish about the country’s investment landscape. For local and regional players, this is an opportunity to exit to global players looking to expand in the country.
