In the ADB’s Asian Development Outlook 2019 Updatepublished on September 25, ADB said that despite the moderation of Vietnam’s GDP in the first half of 2019 and the weaker external environment, the economy will remain resilient this year and next year.
Vietnam’s inflation is also forecasted to be reduced to 3.0% from 3.5% in 2019 and 3.5% from 3.8% in 2020.
ADB Country Director for Vietnam Eric Sidgwick said that despite a slowdown in export growth due to the trade conflict between the US and China as well as the downturn in global trade; the Vietnamese economy remains healthy thanks to continued strength in domestic demand and sustained inflows of foreign direct investment (FDI).
He added that prospects for domestic consumption continues to be positive, supported by an increase in peoples incomes, buoyant employment and moderate inflation.
ADB also stated that the signing of the EU-Vietnam free trade agreement and the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership will help further open market access for trade and investment.
In addition, Vietnam’s recent amendment to the Public Investment Law is expected to improve public investment by accelerating processes, simplifying procedures, and enabling faster disbursement of public investment, according to ADB.
The ADB report also pointed out risks in the forecast for the Vietnamese economic performance including further escalation of the US-China trade tension and global economic slowdown.