Vietnam sees bright economic outlook for 2018: economists

Vietnam’s economy, this year, can continue to thrive amid better prospects of foreign direct investment (FDI) inflow and export revenues but low productivity remains a concern, economists said. Last month, the Asian Development Bank (ADB) lifted its economic growth forecast for Vietnam to 6.7 percent in 2018 from its previous projections of 6.3 to 6.5 percent. The World Bank gave a more conservative forecast of 6.5 percent. Meanwhile, after a 10-year high GDP growth of 6.81 percent in 2017, the government expects the economy to expand 6.5-6.7 percent this year. Being an export oriented economy, Vietnam’s somewhat surprisingly fast growth last year owes a lot to the recovering global economy, which expanded 3 percent in 2017, the highest rate since 2011.  This trend would continue, said economist Vo Tri Thanh.  Vietnam’s export revenue expanded by 21 percent against 2016 to $213.7 billion, the highest in the past five years. Following what Prime Minister Nguyen Xuan Phuc called a “year of records”, the country is targeting export growth of 7-8 percent this year. Favorable investment climate Investors are positive too and the sentiment is forecast to continue in 2018 stemmed from confidence in Vietnam’s economic prospects, economist Nguyen Tri Hieu told VnExpress International. The favorable investment climate is aided by projected stable foreign currency exchange rates, inflation and interest rates in 2018, Hieu said. Following 10-year highs in the third quarter of 2017, the VN-Index, a capitalization-weighted index of all the companies listed on the Ho Chi Minh City Stock Exchange,… [Read full story]

Link and