Photo for illustrationRapid growth of 6.8% was recorded in 2017 and ANZ Research forecast this rate will be maintained in 2018 and 2019.
In fact, GDP growth in the first half of the year increased more sharply than expected at 7.1%. The strong growth in the industrial sector and the continuous expansion of production facilities based on foreign direct investment (FDI) inflows are plentiful and will sustain strong growth.
While the effects of US-China trade tensions are starting to be felt in some countries, especially with new export orders being cut and a slowing Purchasing Managers' Index (PMI), Vietnam remains a highlight in the region.
ANZ Research forecast Vietnam will be still an attractive FDI destination for multinational companies and big groups will likely accelerate the shift of manufacturing production into Vietnam for export to third markets.
The signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership and free trade agreements with the EU will heighten Vietnam’s attractiveness as an FDI destination, as well as promote the medium-term growth potential of the country.
Although the outlook for the Vietnamese economy is positive, it is important to manage the strong growth momentum and avoid imbalanced growth to ensure the sustainability of the expansion, the bank stressed./.