Vietnam’s growth estimated at 6.9-7% in 2018: NFSC

Friday, 2018-12-21 10:35:56
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The workshop to release a report on the overview of Vietnam’s financial market.
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NDO - The Vietnamese economy is estimated to expand by 6.9-7% in 2018, driven by manufacturing and services, according to the National Financial Supervisory Commission (NFSC).

The regulator said such a growth rate will be the highest in ten years, citing a report on the overview of Vietnam’s financial market.

In 2018, despite slowing global trade due to geopolitical tensions and the US-China trade war, the Vietnamese economy continued to record a variety of notable achievements.

The NFSC added that Vietnam’s macroeconomic foundations were maintained, with inflation contained at 3.6% and core inflation remaining stable below 1.5%, while major balances of the economy were guaranteed.

2018 also saw a greater role of the capital market, and a decreasing reliance on the banking sector, in supplying capital for the economy.

The ratio of banks’ capital supply fell but it was more effective and of better quality.

In the meantime, the stock market grew strongly, with market capitalisation now equivalent to 75% of GDP, exceeding the target set for 2020.

The report by the NFSC also forecasts that Vietnam’s economy could expand 7% in 2019, but the country needs bolder institutional reforms to improve the business climate and increase private investment.

Inflation is projected at 4% so long as price adjustments to various public services are strictly controlled.

However, the Vietnamese economy will be affected by unpredictable global uncertainties, notably the US-China trade conflict, which is expected to endure for a long time and affect global economic growth and trade.

Therefore, the report noted that financial stability should continue to be among the top priorities in 2019.