Standard Chartered Forecasts High Economic Growth in Vietnam
Vietnam would attain economic growth of 8.2 per cent this year and 8.8 per cent in 2007, forecast the British Standard Chartered Bank, while citing that such a growth rate would greatly benefit from lower tariffs and increased access to the world markets.
Seeing the WTO accession by the end of this year as “highly likely”, Joseph Tan, economist at the bank’s Global Research Team believed that exports would be an impetus for GDP growth in Vietnam.
However he forewarned that the inflation risk may pose to the economy. The bank projected that Vietnam’s inflation would still stay high at 7.7 per cent in 2006, before rounding down in 2007.
In addition, opening the market upon entering WTO also means increased competition, said the bank.
Recently, the Asian Development Bank (ADB) projected the Vietnamese economy would grow 7.8 per cent this year and 8 per cent next year.
The country, which had recorded a GDP rise of 7.4 per cent in the first half of 2006, targeted at posting an economic growth of 8 per cent this year and curbing inflation below 8 per cent.
New Hanoi, VNS
Vietnamese
