Fitch Solutions forecasts Vietnam's GDP to grow 6.5% per year
(VOVWORLD) -Fitch Solutions has forecast Vietnam’s average annual growth rate of 6.5% over the next decade as Vietnam is diversifying export markets and improving its infrastructure.
 Production assembly of VinaTex Hong Linh SJC at Hong Linh Industrial Zone in Ha Tinh province (VNA) |
Although the forecast is at the lower end of the growth target of 6.5-7% per year set by the Vietnamese government for the 2021-2025 period, the market research company said there are still many bright spots. For example, the free trade agreements that Vietnam recently signed will help the economy expand its ability to access outside markets and avoid overdependence on a single trade partner. Another positive point is that Vietnam plans to prioritize the import of high-tech machinery and equipment.
According to Fitch Solutions, Vietnam's target of budget deficit of 3.7% of GDP in the next 5 years and public debt at 47.5% of GDP, below the 65% limit, is feasible thanks to the potential strong economic growth.
Last year, Vietnam’s GDP grew 2.9% because of Covid-19 and it was still one of the few economies in the world achieving positive growth.