The IMF said trade tensions and volatility affected Vietnam in 2018, but the economy had remained resilient, fueled by growth in middle class incomes and consumption, a strong harvest and surging manufacturing. The strong economic momentum is expected to continue in 2019, aided by competitive labour costs and other strong fundamentals, including a diversified trade structure, and recently signed free trade agreements which are spurring reforms, according to the IMF. However, Vietnam’s gross domestic product (GDP) growth is expected to fall to 6.5 percent in 2019 due to weakening external conditions, the IMF said. The country’s inflation would increase from 3.5 percent in 2018 to 3.6 percent and 3.8 percent in 2019 and 2020 respectively, it added. The IMF’s executive directors welcomed Vietnam’s improvements in tax policy and administration, including higher environmental taxes, the tightening of government guarantees and lower current spending, which helped … [Read more...] about IMF forecasts Vietnam’s economy to grow by 6.5 percent in 2019
Vietnam economy
Scenarios for Vietnam’s future economy
Photo: Vietnam Finance According to the report, there will be two scenarios for Vietnam’s economy in 2019. Under the first scenario, Vietnam’s economy will grow 6.56% and inflation will be at 4.21% while the second scenario forecasts Vietnam’s economy will grow by 6.81% with inflation at 4.79%. Experts say the second scenario is more likely thanks to growth factors from 2018, and the Vietnamese government efforts to increase economic competitiveness and productivity, together with Vietnamese enterprises’ increasing participation in international trade. GM_EN_PC_ARTICLE_Native_ads The annual report also mentions 4 scenarios concerning Vietnam’s digital economy by 2045. Accordingly, digital transformation will help the economy grow additional 1% annually, with digital exports contributing 0.45% to annual economic growth, and digital consumption contributing 0.43% of the growth while the traditional digital scenario is at 0.38%. … [Read more...] about Scenarios for Vietnam’s future economy
On summit sidelines, North Koreans study Vietnam’s economy
Eric Talmadge, Associated Press Updated 4:13 am PST, Wednesday, February 27, 2019 Policemen stand guard outside VinFast, an automotive startup manufacturer in Hai Phong, Vietnam Wednesday, Feb. 27, 2019. As North Korean leader Kim Jong Un prepared for his second summit with President Donald Trump, top members of his delegation made a whirlwind tour of one of Vietnam’s most successful conglomerates. less Policemen stand guard outside VinFast, an automotive startup manufacturer in Hai Phong, Vietnam Wednesday, Feb. 27, 2019. As North Korean leader Kim Jong Un prepared for his second summit with President Donald ... more Photo: Minh Hoang, AP Photo: Minh Hoang, AP Image 1 of / 7 Caption Close Image 1 of 7 Policemen stand guard outside VinFast, an automotive startup … [Read more...] about On summit sidelines, North Koreans study Vietnam’s economy
Vietnam’s fiscal deficit likely to remain wide during 2019
With budget collection likely to be constrained due to the loss of import duties and tariffs as Vietnam continues to open up its trade doors, the country’s budget deficit is likely to remain wide, reported a research firm. Fitch Solutions, a macro research subsidiary of Fitch Group said in a newly-released outlook for Vietnam economy that the country’s budget deficit as a share of GDP is estimated at around 5.7 per cent in 2019, similar to the estimated 5.8 per cent in 2018. The research unit added that the Vietnamese Government is likely to miss its five-year target of cutting the number of State-owned enterprises (SOEs) to 103 by 2020 (a drop from 583 in 2016). Many efforts to attract more foreign investment are losing steam amid tightening monetary conditions globally and complex bureaucratic red tape. These developments pose downside risks to Vietnam’s positive economic growth outlook given that the Government would find it difficult to plug the large … [Read more...] about Vietnam’s fiscal deficit likely to remain wide during 2019
Vietnam looks to an economy with globally extensive connectivity: PM
Prime Minister Nguyen Xuan Phuc (standing) co-chair a WEF dialogue on Vietnam economy (Photo: VNA) Hanoi (VNA) – Prime Minister Nguyen Xuan Phuc has delivered Vietnam’s strong message, aspiration, and determination to become a “country of renovation and creativity” and an economy with globally extensive connectivity when engaging in every activity of the World Economic Forum (WEF) 2019 in Davos, Switzerland. He participated in 37 activities where he and heads of State and Government leaders of 50 countries and executives from leading groups around the globe discussed and dialogued matters relating to the forum’s theme “Globalization 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution”. PM Phuc said the Fourth Industrial Revolution is “knocking” on every enterprise and bringing profound changes that no country can be an outsider, and delivered Vietnam’s wish to become one of the passengers at … [Read more...] about Vietnam looks to an economy with globally extensive connectivity: PM