Standard Chartered puts Vietnam’s growth at 6.8% for 2018

Thursday, 2018-01-18 10:19:18
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Vietnam's economy is expected to maintain strong growth in 2018.
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NDO/VNA - Standard Chartered Vietnam has forecasted that the Vietnamese economy will expand by 6.8% this year.

Nirukt Sapru, the bank's CEO for Vietnam and ASEAN and South Asia Cluster Markets, said that almost all macro-economic indicators of Vietnam improved in 2017, helping the country minimise risks of market volatility and increase competitiveness in exports in comparison with other ASEAN economies.

Increasing foreign direct investment (FDI) and the State Bank of Vietnam’s policies have contributed to building trust in the business community, a Standard Chartered report said.

Vietnam’s manufacturing sector was predicted to reach a double-digit growth in 2018 thanks to strong inflows of foreign investment and strong demand for electronics in global markets.

The bank also forecasted that Vietnam is likely to lure nearly US$15 billion in FDI this year, mostly in electronics manufacturing.

The service sector will also be one of the main contributors to Vietnam’s economic growth, it noted.

According to Chidu Narayanan, economist for Asia at the Standard Chartered Bank, Vietnam is benefiting from its participation in regional and global trade pacts.

He said a young, well-educated workforce and low costs will also help Vietnam attract more FDI in the near future.