Vietnam's economy begins a new recovery cycle

During the period, according to NCIF, Vietnam's economy will have escaped from the slowdown and begin a new cycle of recovery. Moreover, NCIF also forecasts that economic growth will recover strongly thanks to the FTAs, FDI enterprises and increasing demands of foreign markets.

While economic restructuring, institutional reform and business environment continue, the construction sector will see strong growth, serving as a key driver for economic recovery. The services sector will grow at a moderated rate while the agricultural sector may shrink, due to the impact of climate change and without any breakthrough solutions, leading to an effective agricultural structure; this sector also faces the increasingly strict requirements of quality standards and technical barriers.

Accordingly, NCIF has assumed that the world's economic growth continues to be stableat 3% on average as forecast in July 2016 by the International Monetary Fund, NCIF experts also forecast average economic growth in the period of 2016-2020 may reach 6.55%.

To reach the growth rate according to this scenario, Dr. Dang Duc Anh of NCIF said, this requires a number of domestic inputs, such as: public sector investment to be improved in terms of both disbursement speed and efficiency; effective policy management, favorable legal procedures and the investment; average growth rate of the whole society at 7%.

In particular, the financial system needs to ensurea stable, fiscal policy and flexiblecurrency policy. The FTAs should be implemented effectively to help improve investment in the country and Vietnamese exports.