Vietnam's gross domestic product growth is forecast to reach 6 percent this year, gradually increasing to 6.5 percent in 2017, according to the World Bank.
|Although economic growth was improving, the World Bank warned that Vietnam was still performing below its potential, due to slow-moving structural reforms, especially in the banking sector and SOEs (Photo: VNA)|
The growth is attributable to the continued strong performance of manufacturing, export and foreign investment.
The World Bank made the statement in its "Global Economic Prospects" report, released on June 10.
Growth in East Asia and the Pacific is expected to ease to 6.7 percent this year and remain stable thereafter, with the continued slowdown in China gradually offset by a pickup in the rest of the region, which is benefiting from the strengthening recovery in advanced countries.
Regional countries will mostly benefit from low fuel prices, but the impact will vary across nations, reflecting the magnitude of net fuel importers, energy intensity of production, and the share of oil and gas in energy consumption.
The report said developing countries face a series of tough challenges in 2015, including the looming prospect of higher borrowing costs in a new era of low prices for oil and other key commodities. This will result in a fourth consecutive year of disappointing economic growth this year.
Globally, growth is now expected to be 2.8 percent this year, lower than the 3 percent anticipated in January. It is expected to pick up to 3.2 percent over the next two years.-VNA