ADB maintains Vietnam’s 2019 growth forecast at 6.8%

The Asian Development Bank (ADB) retained its growth projections for Vietnam at 6.8% for 2019 and 6.7% for 2020 in a report released on July 18.

The predictions in the Asian Development Outlook Supplement are unchanged from the forecasts made in the April report.

In the latest version, the ADB said Vietnam has been the fastest-growing economy in Southeast Asia this year, noting that growth in the first half of 2019 is estimated at 6.8% year on year despite agriculture being hobbled by a prolonged drought and African swine fever.

Growth in industry and especially manufacturing remained robust, though moderating from the first half of 2018.

Sustaining growth were strong inflows of foreign direct investment, up by 27% in the first five months of 2019 from a year earlier. China overtook the Republic of Korea (RoK) and Singapore to become the largest overseas provider of newly registered capital. Meanwhile, the US remained the largest export market for Vietnam, whose exports to this country growing by 28% in the first five months over the same period of last year.

According to the ADB, Vietnam’s inflation will be at 3.5% in 2019 and 3.8% in 2020.

The bank also upgrades growth forecasts for Southeast Asia, saying that the region is likely to record an economic growth rate of 4.8% this year and 4.9% in 2020.

Nhandan