Vietnam’s Economy Projected to Grow 6.81% in 2019: Report

3:17:32 PM | 5/30/2019

Vietnam’s economic growth is expected to reach 6.81% in 2019 and thereby meet the National Assembly’s target, according to a report released by the Vietnam Institute for Economic and Policy Research (VEPR) on May 29.

This is a highly likely scenario described by the think-tank, citing a strong momentum from 2018 and the government’s efforts to improve the competitiveness and productivity.
Such efforts could be seen as relatively strong growth of industry and services, the VEPR report noted.

In addition, domestic enterprises are trying their best in the field of international trade as seen in the domestic sector’s export growth rate which outpaced that of the foreign sector in the first quarter of 2019.

This is different from the trend of previous years when foreign-invested enterprises always achieved a higher export growth rate than their domestic peers.

But in a less optimistic scenario, Vietnam’s economic growth is projected at 6.56% as a result of heightened US-China trade tensions, noted VEPR Director Nguyen Duc Thanh.

According to the report, inflation in 2019 is projected to be more difficult to control and could reach as high as 4-5%.

In order to curb inflation, regulators are advised to watch price movements closely in the second half of 2019 while the State Bank of Vietnam should continue a cautious monetary policy to keep inflation in check and maintain macroeconomic stability.

The VEPR report also peers into the future of a digital economy in Vietnam, pointing out the opportunities and challenges facing both Vietnamese society and enterprises with this new endeavor.