(VOVworld) – The World Bank (WB) released its updated report on Vietnam’s economic development on Friday.

The WB predicts Vietnam to obtain a growth rate of 5.3% this year

WB Chief Economist Deepak Mishra said this year’s economic growth is estimated at 5.3% and 5.4% in 2014. Inflation is predicted to increase to 8.2% later this year. Mr. Mishra underlined that the government has applied monetary and fiscal policies to stabilize the macro-economy which have been paying-off. The WB appreciated the establishment of the Asset Management Company of credit organizations, which is a firm step toward resolving bad debts. Mr. Mishra pointed out challenges to Vietnam’s macro-economy including slow reform, particularly in the state-owned enterprises. He said Vietnam needed an effective intersectoral collaboration mechanism and enhanced transparency.