In an update of its flagship annual economic publication, Asian Development Outlook (ADO) 2018, ADB forecasts Viet Nam’s economic growth at 6.9% for 2018, slightly lower than 7.1% projected in April as exports, agriculture, construction, and mining are expected to moderate in the second half of the year. ADB retains its 2019 growth forecast for Viet Nam at 6.8%, as ADB Economist Nguyen Minh Cuong explains: “Industrial manufacturing was a bright spot in national economic development with a growth rate of 9.3%, far exceeding last year’s 5.4%. Agricultural growth rate was 3.9% with significant contribution by high-value sectors such as fisheries. Service industry increased by nearly 7% with 27% rise in tourist visits is an impressive growth.”  

ADB Country Director of Viet Nam, Eric Sidgwick, said that the economic performance was broad-based, driven by vigorous manufacturing expansion, bumper agriculture production, robust performance of services sector, resilient domestic consumption, and strong investment fueled by FDI and domestic enterprises.

Viet Nam’s economy, however, remains vulnerable to external and domestic challenges. Growth moderation in the major economies such as the People’s Republic of China, European Union, and Japan may dampen aggregated demand of global trade. The escalating trade frictions around the world could adversely impact the export performance and FDI inflows to Viet Nam.