Vietnam may have a 5.7 per cent economic growth this year and also reduce inflation to below 10 per cent, forecast the World Bank in a report on May 23 in Hanoi.
According to the World Bank, after a prolonged period of heightened turbulence, Vietnam’s economy has gradually entered a more stable macro-economic environment, especially after the government promulgated and implemented Resolution 11 in February last year to stabilise the economy.
However, while Vietnam’s economy has begun to stabilise, significant tightening of macro-economic policies along with an uncertain global economic environment have begun to take a toll on the country’s economic growth.
The report said that Vietnam’s public debt is likely to remain sustainable if the present economic recovery continues and authorities maintain current path of fiscal consolidation. In addition, the World Bank’s Low-Income Country Debt Sustainability Analysis also showed that Vietnam remained at low risk of debt distress.
Experts from the World Bank considered that Vietnam’s near-term policy challenge is to maintain macro-economic stability and restore confidence among investors, while also addressing long-term structural reforms.
Even if only a part of the announced structural reforms are implemented, Vietnam should still return to a more sustainable macro-economic environment while laying the foundation for greater efficiency and productivity to drive medium and long-term growth.