VINACHEM

Vietnam’s gross domestic product (GDP) will fall short of its potential this year but will improve in 2014, according to the Australia-New Zealand Banking Group (ANZ).

To return to its potential level of 7 percent, the bank recommended the country speed up the restructuring of commercial banks and State-owned enterprises.

Vietnam will register 5.1 percent GDP growth in 2013 and 5.25 percent next year, it said.

Inflation is expected to close between 6 and 8 percent this year while weak domestic demand will keep the consumer price index at a medium level.

The bank commented that the Vietnamese currency will exchange at 21,500 per USD by mid-2014, compared to the current rate of 21,150.

Dr Le Xuan Nghia, former chairman of the National Financial Supervision Committee, said that the country this year will obtain a growth rate of 5.3 percent and keep inflation at 7.6 percent while enjoying an increase of 15 percent in exports and an 11 percent credit growth.

He forecast that economic growth will climb up to 5.7 percent thanks to increasing investment, while inflation will be up 7 to percent, exports will soar 19 percent and credit growth will rise 14 percent.