Vietnam’s economy remains resilient: ADB

The Asian Development Bank (ADB) has predicted that Vietnam's economy will maintain healthy growth, at 6.8 percent this year and 6.7 percent next year.

In its Asian Development Outlook 2019 Update launched on Wednesday, the ADB noted that while Vietnam's GDP moderated in the first half of 2019, it will remain resilient until at least next year despite a weaker external environment. Inflation forecasts are revised down to 3 percent for 2019 and 3.5 percent for 2020.

Despite a slowdown in export growth due to the escalation of the trade conflict between the US and China and the consequent downturn in global trade, the Vietnamese economy remains healthy thanks to continued strength in domestic demand and sustained inflows of foreign direct investment," said ADB Country Director for Vietnam Eric Sidgwick.

"The recent signing of a free trade agreement with the European Union promises to further open market access for trade and investment, as does the Comprehensive and Progressive Agreement for Trans-Pacific Partnership."

"A recent amendment to the Public Investment Law should improve public investment by accelerating processes, simplifying procedures and enabling faster disbursement of public investment, he added.

While retaining the growth outlook for Vietnam, the report also highlighted significant risks to the forecast, including further escalation of the US-China trade tension and continuing global economic slowdown.

Source: VOV5