(VOVworld) - The Asian Development Bank forecasts that Vietnam’s economy will grow by 5.2% this year and 5.6% next year. The figures were released Tuesday in the bank’s 2013 Asian Development Outlook which also projects that Vietnam’s inflation rate is likely to hold at 7.5% this year and export revenues will grow steadily.

ADB releases the 2013 Asian Development Outlook (Photo: VOV)

According to the report, Vietnam had a stable economy last year thanks to tightened policies which helped rein in inflation and improve the balance of payments. The bank said Vietnam, with its economy continuing to grow stably, will remain an attractive destination for foreign investors. ADB suggested that the government step up its reform of the banking sector and State-owned-enterprises. Tomoyuki Kimura, ADB Country Director for Vietnam, said: "Despite this concern, Vietnam remains an attractive destination for investors because of its large and growing working-age population and low labor cost. This is illustrated by the increasing trend in FDI in the past 10 years. Nevertheless, as I see the integration in 2015 approaches, the country faces increasing competition for FDI in Southeast Asia. Vietnam’s ability to remain competitiveness and drive economic growth back to 7%-8% will depend on successful implementation of structural reforms and improving the business environment".

ADB promised to help Vietnam restructure its economy by providing loans and consultations for medium- and long-term policies.