The World Bank (WB) expects that the Vietnamese economy will have expanded by 6.8% in 2019, with public debt reduced by nearly 8 percentage points of GDP since 2016 and a trade surplus for the fourth year in a row.
It noted that such results are remarkable in the context of a slowing global economy.
In its latest bi-annual Taking Stock report on Vietnam, released on December 17, the WB stated that Vietnam’s economic growth has continued to be driven by strong exports, foreign investment and private consumption.
Vietnam’s exports are expected to expand by 8% in 2019, nearly four times faster than the world average while the country has remained an attractive destination for foreign investors, with foreign direct investment averaging US$3 billion per month.
According to the WB, Vietnam’s economic fundamentals appear robust and the government has built some fiscal space through its prudent fiscal policy.
The bank predicts good prospects for the Vietnamese economy in the short to medium term, forecasting growth of 6.5% for Vietnam over the next few years.
In its report, the WB also recommended that Vietnam develop a strong and dynamic private sector a priority in order to cope with external shocks and to bring an additional engine of growth to the economy.