The ADB said Vietnam experienced another year of strong growth in 2018, although a weaker external environment could affect its growth outlook for this year and next.
Last year, the Vietnamese economy expanded by 7.08%, the fastest pace since 2008, as a result of strong exports and domestic demand.
According to the Head of ADB in Vietnam, Eric Sidgwick, the country’s economic growth will likely hold up well in the near term, supported by export-oriented manufacturing, foreign direct investment, and sustained domestic demand.
He added that the growth momentum is expected to continue, thanks to ongoing reforms to improve the business environment and efforts to encourage private investment.
Growth will continue to be broad-based, underpinned by robust private consumption, in addition to the continued expansion of manufacturing, services and agriculture, and greater market access for Vietnam’s exports through various free trade agreements, the ADB noted.
Inflation is expected to average 3.5% in 2019 and 3.8% in 2020.
However, risks remain as Vietnam’s key trading partners are weakening, while slow progress in the reform of state-owned enterprises at home could be a drag on growth.
