GDP growth forecast to approximate 6.9-7.1 percent in 2019: NCIF

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Gross Domestic Product (GDP) growth rate of Vietnam will approximate 6.9-7.1 percent in 2019, predicted the National Center for Socio-Economic Information and Forecast (NCIF) under the Ministry of Planning and Investment in its latest forecast.

Workers maintaining electricity network in HCMC

Workers maintaining electricity network in HCMC

Dr. Dang Duc Anh, head of the center’s Analysis and Forecast Division, said that ongoing macroeconomic stabilization, FDI attraction, economic restructuring intensification and free trade agreements implementation will support the economic growth. These factors make the division believe in above 6.9 percent GDP growth rate next year.
However, NCIF researchers noted that Vietnam will face many risks in the phase of 2019-2020 as the economic growth has been more and more dependent on FDI enterprises. This sector has concentrated on some major products, so the economic growth will be seriously affected when there are lawsuits or trade conflicts.
Aside from that, the credit growth and money supply are at high levels. If being prolonged, that will pose latent risks to national debts and macroeconomic instability.
The process of marketization and adjustment of public service prices covering electricity price, environmental protection tax and health service prices should be considered carefully to minimize impacts to macroeconomic stabilization in the next phase.

By ANH PHUONG – Translated by Hai Mien

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