On September 27, the Asian Development Bank (ADB) launched the “Asian Development outlook update (ADOU) 2016”. The report forecasts a downward revision in Vietnam’s economic growth to 6.0% in 2016, and 6.3% in 2017.
Mr. Eric Sidgwick, ADB Country Director for Viet Nam said: “Drought in the Mekong and Central Highlands regions and low global commodity prices eased economic growth in the first half of the year, but other sectors have grown strongly. Manufacturing expanded by double-digits as new foreign-invested factories ramped up production, while services picked up as a result of rising domestic trade, growing bank lending and a 25% jump in tourism arrivals”.
The report forecasted that while Vietnam’s economy is performing reasonably well against a challenging back-drop, a number of issues will need to be addresses to ensure growth remains sustainable.
The report noted that trade performance remains a bright spot for Viet Nam’s economy. In the first 6 months of 2016, the country produced a large merchandise trade surplus equal to estimated
8.2% of GDP. This outcome was a big improvement on 2015 and reflects continued growth in exports while import demand has eased.
Vietnam’s economic growth is expected to rise in the second half of the year, buoyed by further increases in foreign direct investment and exports, domestic credit growth, a slight recovery in agriculture and accelerating disbursements of capital expenditure on national infrastructure programs.Huyen Chi