The Vietnamese government has given a positive economic forecast with this year's possible GDP growth of more than 6.7% along with gradually improved growth model.
The structure of state budget expenditures is set to improved, of which, regular spending continues to decline and expenditure for development investment is going to increase.
Vietnam recorded a fiscal deficit of VND26.8 trillion (US$1.14 billion) in the nine months through September, widening from a deficit of VND1.7 trillion (US$72.69 million) recorded one month earlier.
Macroeconomic targets were built with the presumed crude oil price at below $50 per barrel. However, the price has exceeded the $90 per barrel threshold, nearing $100.
The Vietnamese economy is stepping into the late phase of the business cycle, while FDI corporations alone cannot drive the economy, according to Vietnam Dragon Securities Corporation (VDSC).
Vietnam’s economy grew 6.81% in 2017, and is likely to attain a higher growth rate this year. While Samsung was the key driver of economic growth in 2017, Formosa and Nghi Son Refinery will take over this role in 2018.
Given the gross domestic product (GDP) growth rate of 6.88% in the third quarter of 2018, the Vietnam Institute for Economic and Policy Research (VEPR) forecast the country’s full-year growth target of 6.5%-6.7% is attainable, and the rate is more likely to surpass 6.8%, underpinned by the foreign direct investment (FDI) sector’s strong performance.
