ANZ optimistic about Vietnam’s long term prospects

The Vietnam government's commitment to broad-based economic reforms bodes well for the country's longer term prospects and look to have it on the path to upper middle-income status, said Head of Asia Research of Australian multinational banking and financial services company ANZ.

In an article on the bank's website on Monday, Khoon Goh said Vietnam's gross domestic product growth in the first half of 2019 was solid, particularly considering the downturn in global trade and the impact of African swine fever (ASF) on the agriculture sector. As a result, ANZ Research maintains its full-year 2019 GDP growth forecast for Vietnam of 6.7%. Although this is lower than the 7.1% growth rate achieved in 2018, it reinforces Vietnam's place as one of the fastest-growing economies in Asia. Inflation is expected to remain manageable, averaging 2.8% in 2019 which is below the State Bank of Vietnam's 4% target.

As Vietnam continues to reap the benefits of past reforms and commit to further ongoing reforms, Vietnam is on track to double its per capita gross national income from 2,400 USD in 2018 to 4,800 USD by 2028, graduating to upper middle income status, Mr. Goh said. He noted that the government's shift towards a focus on attracting new-generation FDI is essential to ensure sustainable economic development.

Source: VOV5