Viet Nam’s Economy Continues to Grow Rapidly: ADB

The Asian Development Bank (ADB) said that Viet Nam’s economy is growing in a healthy way at 8.3 percent.

Viet Nam's economy is predicted to grow at 8.3 percent in 2007

In the Asian Development Outlook 2007 Update (ADO Update), which was released in Ha Noi on Monday, the bank said that despite being a new member of the World Trade Organization, Viet Nam’s economy will continue to expand rapidly at 8.3 percent in 2007 and 8.5 percent in 2008.

According to ADB Country Director to Viet Nam Ayumi Konishi, vigorous investment and consumption have accelerated economic growth during the first half of this year.

An increase in import, which is partly contributed by investment, has expanded trade deficit more than expected. Inflation is considered to be under control, although the relatively high level of inflation calls for the Vietnamese Government’s close attention, he added.

“What is most important for Viet Nam continues to be the acceleration of reforms and faster implementation of development projects through simplification of procedures,” he said.

ADB Deputy Country Director to Viet Nam, Dr. Omkar Shrestha, said that Viet Nam’s economic growth is motivated by strong investment and consumption.

Investment increased at 14% in the first half of 2007, which was contributed by WTO entry and improved business environment. According to the ADB, nearly all the economic expansion in Viet Nam came from industry and services, and the dynamism of private sector is noted with expansion of 35 percent in the first half of 2007.

The bank also said assuming that Viet Nam’s WTO accession will help further integrate the economy into global business networks, encourage foreign direct investment and maintain the momentum for domestic reforms, Viet Nam’s economic expansion is expected to accelerate to 8.5 percent in 2008.

Regarding the country’s inflation, the bank said the inflation rate has shown upward tendency, with 8.3 percent in 2005, 7.5 percent in 2006 and 7.3 percent in August 2007.

The bank said that the inflation rate is a concern but not alarming. The inflation level is expected to be contained at 7.8 percent for 2007 and is expected to be reduced further to 6.8 percent in 2008.

Reported by B.H – Translated by Thuy Hang

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