Asia: ADB revises 2017 growth forecast for Vietnam

The Asian Development Bank (ADB) has recently increased its 2017 growth forecast for Vietnam to 6.5% from 6.3% and expects economic growth to further strengthen to 6.7% in 2018 thanks to rising activity in the manufacturing, construction, trade as well as banking and tourism. The country’s growing population, especially the middle-class also helps to boost the economy through overall consumer spend in the retail sector.

According ADB, government reformation in the late 1980 through removing trade barriers and abolishing collective farming has brought a positive impact on growth in agriculture, manufacturing and mining in the past few decades while the recent campaign on tourism has been increasing the number of foreign tourist arrival which further boost the country’s overall economy.

While the figures have been positive, the concern on stronger overseas competitors and worsening global climate remains. Being a country in which agriculture accounts for one-fifth of Vietnam’s gross domestic product, the sector holds an important role in the economy’s performance as well as employment rate. As of 2005, around 60% of Vietnam population were involved in agriculture, forestry and fishing. The government continues to develop more policies and take actions to address issues in adopting sustainable resources management practices, post-harvest processing as well as developing rural infrastructure to keep its positive outlook.

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