The World Bank predicts Vietnam’s economic growth rate would reach 6.6 percent in 2019 in its latest Managing Headwinds report.
The growth rate will be driven by credit tightening, slower private consumption and weaker external demand. Vietnam News Agency, a state-run media reported on April 25.
For the medium term, the growth is projected to stay around 6.5 percent, due to the impact of current cyclical uptick dissipates, the report said, adding that poverty may decline further as labour market conditions remain favourable.
In its report, the World Bank advised Vietnam to stay ready to respond to changes in the global economy and to continue managing its macro-economy actively and carefully.
It forecasts growth in other developing countries in East Asia and the Pacific to soften to 6.0 percent in 2019 and 2020, down from 6.3 percent in 2018.
The prediction of World Bank is different from Asian Development Bank (ADB). In its report “Asian Development Outlook 2019” ADB said: Strong exports and domestic demand pushed Vietnam’s gross domestic product (GDP) growth higher in 2018 than in more than a decade, standing at 7.1 percent, but in 2019 and 2020, a weaker external environment will likely moderate growth and narrow the current account surplus, while inflation remains stable this year but will rise somewhat next year, the ADB stated in its report released Wednesday.
According to ADB, Vietnam’s economic growth will continue to be broad-based, underpinned by export-oriented manufacturing, inward foreign direct investment (FDI), and sustained domestic demand. Ongoing reform to improve the business environment should encourage private investment, as should efforts to forge stronger ties with partners around the world through various trade agreements.