VINACHEM

The World Bank (WB) in Vietnam has stated that the Vietnamese economy marked positive changes in the first half, with growth estimated at 5.7 percent and inflation kept below 2 percent.

Speaking at an event in Hanoi on July 13 to announce the WB’s update on Vietnam’s recent economic development, chief economist Sebastian Eckardt, Acting Country Director of the WB in Vietnam said the economy is still resilient thanks to stronger domestic demand and improving manufacturing and engineering.

According to the report, Vietnam’s medium-term economic outlook will be optimistic with an estimated growth of 6.3 percent this year. Inflation will be stable on the back of low prices of food and energy.

From 2018-2019, the growth is expected to hit 6.4 percent.

The report urges Vietnam to continue taking cautious approach to steering the macro-economy by reducing overspending to curb increasing risks regarding budget sustainability and create fiscal space against potential shocks in the future.

Vietnam needs to continue improving risk evaluation and monitoring capital safety to minimise arising risks amid credit extension, it said, adding that the country’s challenge is still how to sustainably maintain high growth and poverty reduction, it says.

Barriers to the restructuring of State-owned enterprises and business climate improvement will continue to be removed.

The report also features a special topic entitled “Towards strengthening high-quality financing” with a number of recommendations.

- VNA -