World Bank expects slower growth for Vietnam

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Vietnam factoryVietnam’s economy is expected to grow at a moderate rate of around 5.3 per cent in 2013 and 5.4 per cent in 2014, according to a report by the World Bank released on July 12. The country’s inflation rate will be at 8.2 per cent by the end of 2013.

World Bank Vietnam’s chief economist Deepak K. Mishra said Vietnam’s macro economy is “relatively stable” thanks to the government’s proper financial and monetary policies intended to stabilise the economy.

Inflation has been reduced to 6.7 per cent as of the end of June 2013, coupled with increased foreign reserves, improved balance of payment and stabilised interest rates, the report said. The country’s total export value is estimated to rise by 16 per cent year-on-year, with foreign direct invested (FDI) sector accounting for 66 per cent of the total, up 25 per cent.

However, FDI to the country declined from 11.8 per cent of GDP in 2008 to 7.7 per cent of the GDP in the first half of 2013. Inflation in 2013 will be badly affected by the increase of the basic salary from July 1 and hikes of electricity, hospital and education fees.

The World Bank noted that Vietnamese economic growth has been slowest since the 1980s. Before the global economic downturn, Vietnam’s GDP growth was higher than the Philippines’, Malaysia’s, Indonesia’s and Thailand’s. However, with the global economic crisis, Vietnam has seen a sharp drop.

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Reading Time: 1 minute

Vietnam’s economy is expected to grow at a moderate rate of around 5.3 per cent in 2013 and 5.4 per cent in 2014, according to a report by the World Bank released on July 12. The country’s inflation rate will be at 8.2 per cent by the end of 2013.

Reading Time: 1 minute

Vietnam factoryVietnam’s economy is expected to grow at a moderate rate of around 5.3 per cent in 2013 and 5.4 per cent in 2014, according to a report by the World Bank released on July 12. The country’s inflation rate will be at 8.2 per cent by the end of 2013.

World Bank Vietnam’s chief economist Deepak K. Mishra said Vietnam’s macro economy is “relatively stable” thanks to the government’s proper financial and monetary policies intended to stabilise the economy.

Inflation has been reduced to 6.7 per cent as of the end of June 2013, coupled with increased foreign reserves, improved balance of payment and stabilised interest rates, the report said. The country’s total export value is estimated to rise by 16 per cent year-on-year, with foreign direct invested (FDI) sector accounting for 66 per cent of the total, up 25 per cent.

However, FDI to the country declined from 11.8 per cent of GDP in 2008 to 7.7 per cent of the GDP in the first half of 2013. Inflation in 2013 will be badly affected by the increase of the basic salary from July 1 and hikes of electricity, hospital and education fees.

The World Bank noted that Vietnamese economic growth has been slowest since the 1980s. Before the global economic downturn, Vietnam’s GDP growth was higher than the Philippines’, Malaysia’s, Indonesia’s and Thailand’s. However, with the global economic crisis, Vietnam has seen a sharp drop.

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