However, the bank predicts that the economy will slow to 6.6% in 2019 and 6.5% in 2020 due to projected moderation in global demand, according to a report released on October 4.
Meanwhile, inflation in 2018 is expected to remain at the government target of 4%, based on some tightening of the monetary stance to counter price increases from domestic input price pressure and rising global commodity prices.
According to the World Bank, risks in the Vietnamese economy remain significant despite the improved short-term prospects.
It stated that Vietnam is witnessing a slowdown in the restructuring of state-owned enterprises and the banking sectors at home, while facing external risks from growing trade protectionism, heightened global and regional uncertainties and continued tightening of global financing conditions.
The institution advised Vietnam to push ahead with policies that will increase macroeconomic resilience and lay the foundation for sustained growth in the future.
It also called for measures to further reduce the spending deficit and a continued focus on comprehensive and deep structural reforms.
Last month, the Asian Development Bank forecast that Vietnam’s economy would grow by 6.9% this year, a downgrade from the previous projection of 7.1%, but noted that the economy continued to perform strongly despite domestic and external challenges.
Official statistics shows that the Vietnamese economy expanded by 6.98% in the first nine months of 2018, the highest rate in the past eight years.