Vietnam economy remains resilient despite external shocks: ADB

By Dat Nguyen   September 25, 2019 | 03:30 am PT
Vietnam economy remains resilient despite external shocks: ADB
An employee works in a car factory in the northern Hai Phong City. Photo by VnExpress/Minh Tuan.
Vietnam’s economy is forecast to grow at 6.8 percent this year despite a weaker external environment, the Asian Development Bank said Wednesday.

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

ADB revised its previous inflation forecasts from 3.5 percent to 3 percent this year and from 3.8 percent to 3.5 percent next year.

"Prospects for domestic consumption continue to be positive, supported by rising incomes, buoyant employment and moderate inflation," Sidgwick said.

Trade pacts such as the EU-Vietnam Free Trade Agreement, which was signed in June and awaits ratification, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect in Vietnam in January, could further open the market to trade and investment, the bank said.

ADB Vietnam's chief economist, Nguyen Minh Cuong, said in the first nine months of this year there has been an increase in domestic consumption and exports. 

This shows that the economy is shifting from being dependent on foreign markets and companies to relying on the domestic market and companies, he added.

The World Bank has forecast the economy to grow at 6.6 percent this year. The government targets growth of 6.6-6.8 percent.

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