Vietnam’s outlook remains positive, according to Taking Stock, the World Bank (WB)’s bi-annual economic report on Vietnam released on July 1, 2019. (Source: VNA)

Recent slower growth reflected the effects of unfavorable external factors on key economic sectors, the report says. Lead Economist for the World Bank in Vietnam Sebastian Eckardt said: “We do see that as expected, economic activities in Vietnam has decelerated somewhat in part because of the more challenging global environment. But nevertheless, at 6.8% in the first six months of the year, Vietnam’s growth continues to be relatively robust. Despite the short term moderation, we continue to have a relatively positive outlook for Vietnam’s economy both as far as the growth prospects as well as macroeconomic stability. Manufacturing, which continues to be the main driver of the economic growth, slowed down from over 13% to now just over 11%. Agricultural sector also decelerated from close to 4% to now just 2.2%.”

According to World Bank’s report, Vietnam’s real GDP growth for 2019 is forecast to slow to 6.6 percent. Inflation indexes are meant to be kept below the official inflation target of 4 percent. Risks have continued to intensify, reflecting heightened global uncertainty amid re-escalation of trade tensions and rising financial volatility.

The report suggests that Vietnam prepare to adjust its macroeconomic policies in case some of these risks materialise and lead to a deeper than expected downturn, and continue to push for deeper structural reforms, enhance export competitiveness and further deepen trade integration through bilateral and regional agreements.