VINACHEM

The BMI Research, a Fitch Group company, has forecast positive prospects for Vietnam's economy in the remaining months of 2015 with the GDP growth to rise to 6.4% in 2015 from 6.0% in 2014.

In its latest report, BMI Research said it maintained a positive view about Vietnam's economy thanks to positive prospects of the foreign direct investment (FDI) inflow and the efforts of the Vietnamese government to improve the business environment with more involvement of the private sector and the enhanced capacity of the banking sector.

The report also stated that Vietnam's manufacturing sector will continue to be the driving force for the economic growth in the coming quarters. Foreign producers and manufacturers will continue to be attracted to investing in Vietnam thanks to relatively low labour costs, a number of tax reductions to investors as well as a young and dynamic labour force.
In addition, Vietnam also has a strong potential in the construction and real estate sectors. The relaxation of the rules of property ownership for foreigners, effective from July 2015 will allow foreign investors to participate further in the real estate market of Vietnam.

The BMI Research said if Vietnam continues to carry out a loose monetary policy and reduce the rate of inflation it will motivate the construction and real estate sectors.

The report said that Vietnam will continue to attract more FDI in the coming quarters and years thanks to continuous efforts to consolidate the macroeconomic stability.

It also noted that the ongoing privatisation of State-owned enterprises will help increase the health of the banking system while freeing more resources to reallocate to the private sector. It added that the promotion of the potential of the private sector will create a motivation for Vietnam's economic growth in the long term.