WB: VN's medium term economic outlook remains positive

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According to the report, Viet Nam’s economy maintains stable growth. Manufacturing and processing industry heading to exports and domestic demands sharply increased. 

The report highlights that Viet Nam's medium term economic outlook remains positive. 

Viet Nam’s economic growth is forecasted to stand around 6.4% in the 2018-2019 period, the report says, adding that the poverty proportion will continue reducing if there is no disadvantages of natural calamity. 

The report suggests that Viet Nam needs to stabilize the macro-economy, forge a policy buffer, reduce fiscal deficit to restrain risks on fiscal sustainability and create a fiscal buffer to cope with future’s shocks as well as strengthen investigation and management to lessen risks for the banking sector in the context of  fast credit development. 

The October 2017 edition of the East Asia and Pacific Economic Update reports that the uptick in growth in 2017 relative to earlier expectations reflects stronger than expected growth in China, at 6.7%, the same pace as in 2016.  In the rest of the region, including the large Southeast Asian economies, growth in 2017 will be slightly faster at 5.1% in 2017 and 5.2% in 2018, up from 4.9% in 2016.

The recovery of the global economy and the expansion of global trade are good news for the East Asia and Pacific region and its continued success in improving living standards, said Victoria Kwakwa, World Bank Vice President for the East Asia and Pacific Region. 

The challenge will be for countries to strike a balance between prioritizing short-term growth and reducing medium-term vulnerabilities, so that the region has a stronger foundation for sustained and inclusive growth, she added. 

By Thuy Dung