(VOVworld) – Vietnam’s economy grew 5.46% in the first quarter of 2016. Although this growth was lower than last year’s 6.12%, it is quite stable compared to the global and regional average. Economists predict Vietnam’s economic growth rate will reach 6.6-6.7% this year.

2016 is the first year of Vietnam’s socio-economic development plan until 2020 so positive results in the first quarter will create momentum for higher economic growth. Economists say the free trade agreements Vietnam has signed or is negotiating will create opportunities and challenges for Vietnam. Doctor Dang Duc Anh at the National Centre for Socio-Economic Information and Forecast said: “A number of factors will stimulate Vietnam’s growth. These include the recovery of global economic growth and the coming into force of a number of Vietnam’s FTAs with other countries like the TPP, the EU-Vietnam FTA, and the Vietnam-Eurasian Economic Union FTA. This will create momentum for trade and investment development.”

The Ministry of Planning and Investment has proposed that the government devise measures to support agriculture and remove obstacles to business development, particularly in mining. Ha Quang Tuyen at the General Statistics Office said strengthened coordination between the government, localities, and the business community is needed to achieve the growth targets set by the National Assembly: “Effective policies on material imports and a growth rate of 12-13% in the processing and manufacturing sectors and 2.5% in the agro-forestry and fisheries sectors will contribute significantly to achieving this year’s overall growth target of 6.7%. The service sector should also maintain its growth until the end of the year.”

The Asian Development Bank’s Asian Development Outlook 2016 says Vietnam’s economy will depend on foreign direct investment, consumer trust, and growth support policies. Eric Sidgwick, ADB Country Director in Vietnam, said although Vietnam’s GDP growth in the first quarter was low, it is part of this year’s GDP growth cycle. The ADB forecasts Vietnam’s growth will be 6.7% and inflation will be kept at 3% in 2016.