Asia: ADB revises growth outlook for Vietnam

By Eunice Koh, RFi Group

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 to the ADB, the government reformation in the late 1980s which removed trade barriers and abolishing collective farming had a positive impact on growth in agriculture, manufacturing and mining. The country’s economy has also been boosted by the increased number of tourists visiting Vietnam over the last few decades.

While the figures have been positive, concern about stronger overseas competitors and worsening global climate still remains. As Vietnam is a country in which agriculture accounts for one-fifth of its 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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