World Bank: Structural reforms remain critical to Vietnam’s growth

Thanks to robust domestic demand and export-oriented manufacturing, Vietnam’s medium-term outlook remains favorable, with GDP expected to expand by 6% this year. Vietnam’s growth was accompanied by low inflation and widening current account surplus. Risks that could adversely affect medium term prospects include continuing delays in implementation of structural and fiscal reforms.

“Vietnam’s macroeconomic stability creates a favorable environment for policy makers to accelerate structural reforms, which is crucial as the country moves toward a more productivity-led growth model,” said Ousmane Dione, World Bank Country Director for Vietnam. “The adoption of the 2016-2020 economic restructuring plan by National Assembly in November, for instance, would address some of the emerging obstacles to growth in the economy.” 

The economy’s recent performance owes in part to rapid credit growth and an accommodative fiscal stance, which may support growth in the short term but amplify existing medium-term financial and fiscal risks, and  exacerbate existing macroeconomic and financial vulnerabilities.

Risks that could adversely affect medium term prospects include continuing delays in implementation of structural and fiscal reforms.

The agricultural sector can bring about more economic value and better livelihoods for farmers and consumers, using less natural and human resources but without degrading the environment. The government will need to lead less yet facilitate more to transform Vietnam’s agriculture and agro-food system.

Read more

World Bank: Deepening Structural Reforms Crucial to Productivity-Led Growth in Vietnam, Dec 5, 2016

Documents & Reports: Taking stock : an update on Vietnam’s recent economic developments – Special focus : transforming Vietnamese agriculture – gaining more from less (English) (Vietnamese), Dec 2016

About the author  ⁄ AmCham Vietnam

AmCham is an independent association of companies with the objective of promoting trade and investment between Vietnam and the U.S. With two chapters, one in Ho Chi Minh City and one in Hanoi, our membership of 700 companies and 1,500 representatives is unified by a commitment to promote trade and investment between Vietnam and the United States.

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