Vietnam's GDP to Grow 7 per cent in 2005/06: EIU

Vietnam's GDP to Grow 7 per cent in 2005/06: EIU

Vietnam's economic growth is projected to remain strong with real GDP growing at about 7 per cent per year in 2005 and 2006, the Economist Intelligence Unit has said.

The forecast is the same as the International Monetary Fund but considerably lower compared to the 7.6 per cent and 7.8 per cent growth predicted by the Asia Development Bank and the World Bank and 8.5 per cent targeted by Vietnam's parliament for this year.

The EIU said the outlook for Vietnam is bright for the two coming years as the country is continuing its effective economic reform.

The EIU also highly appraised the determination of the Vietnamese government and state to combat corruption.

The key challenges for Vietnam, however, are mounting debts and current account deficit and high growth in consumer price index.

The EIU, the business information arm of the Economist Group, which publishes the Economist magazine, put Vietnam's GDP growth at 7.4 per cent last year.

Vietnam itself posted GDP growth of 7.69 per cent in the year.

• (Econet)