IMF forecasts Vietnam’s economy to grow by 6.5 percent in 2019
The IMF said trade tensions and volatility affected Vietnam in 2018, but the economy had remained resilient, fueled by growth in middle class incomes and consumption, a strong harvest and surging manufacturing.
The strong economic momentum is expected to continue in 2019, aided by competitive labour costs and other strong fundamentals, including a persified trade structure, and recently signed free trade agreements which are spurring reforms, according to the IMF.
However, Vietnam’s gross domestic product (GDP) growth is expected to fall to 6.5 percent in 2019 due to weakening external conditions, the IMF said.
The country’s inflation would increase from 3.5 percent in 2018 to 3.6 percent and 3.8 percent in 2019 and 2020 respectively, it added.
The IMF’s executive directors welcomed Vietnam’s improvements in tax policy and administration, including higher environmental taxes, the tightening of government guarantees and lower current spending, which helped cut public and publicly guaranteed debt.
They noted that the focus should be on the quality of adjustments to keep public debt on a declining path and create room for priority infrastructure and social spending, prepare for rapid prospective population aging, and deal with the effects of climate change and digitalisation.
The directors also welcomed Vietnam’s monetary and credit policies stance, especially declining credit growth which is helping Vietnam cement macroeconomic stability.
The IMF experts called on the Government to push ahead with reforms to reduce remaining barriers to investment, including improving access to land and credit, which would boost private investment and raise worker productivity and growth.
Related News
Take advantage of e-commerce leverage for export
13:25 | 20/04/2024 Import-Export
Wood exports started well
13:26 | 20/04/2024 Import-Export
Implementing unprecedented fiscal policies to actively support people and businesses
16:25 | 17/04/2024 Finance
Leverage to increase the scale of Vietnam - Laos trade turnover
10:51 | 15/04/2024 Import-Export
Latest News
Government’s action programme cracks down on illegal fishing
13:53 | 23/04/2024 Headlines
PM calls on ASEAN to pen strategic development vision
13:50 | 23/04/2024 Headlines
Forum to discuss new initiatives on ASEAN future vision: Deputy FM
15:13 | 22/04/2024 Headlines
Investors play a key role in developing the industrial park system
10:38 | 22/04/2024 Headlines
More News
Green transformation and ESG practice to participate in the global competition
18:11 | 21/04/2024 Headlines
Factors influencing Vietnam’s FMCG market
18:06 | 21/04/2024 Headlines
Shrimp exports to major markets bounce back
17:57 | 21/04/2024 Headlines
Quang Ninh aims to become international tourism hub
17:56 | 21/04/2024 Headlines
Measures sought to boost Vietnam - Russia digital economic cooperation
17:43 | 20/04/2024 Headlines
Vietnam becomes biggest rice supplier for Singapore
17:39 | 20/04/2024 Headlines
New fulcrums for economic growth
13:28 | 20/04/2024 Headlines
Opportunity for a high open economy like Vietnam
15:56 | 19/04/2024 Headlines
Cooperation with Vietnam among EU’s priorities in Indo-Pacific: official
15:55 | 19/04/2024 Headlines
Your care
Government’s action programme cracks down on illegal fishing
13:53 | 23/04/2024 Headlines
PM calls on ASEAN to pen strategic development vision
13:50 | 23/04/2024 Headlines
Forum to discuss new initiatives on ASEAN future vision: Deputy FM
15:13 | 22/04/2024 Headlines
Investors play a key role in developing the industrial park system
10:38 | 22/04/2024 Headlines
Green transformation and ESG practice to participate in the global competition
18:11 | 21/04/2024 Headlines