Standard Chartered forecasts Vietnam’s GDP at 6.9%

Wednesday, 2016-01-27 22:42:03
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Vietnam’s GDP growth to reach 6.9% in 2016
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NDO/VNA – Standard Chartered Bank expects Vietnam’s GDP growth to reach 6.9% in 2016, higher than its previous forecast of 6.6% driven by better construction activity and manufacturing strength amidst continued strength of FDI inflows.  

According to Standard Chartered’s Global Research report released in Ho Chi Minh City on January 27, Vietnam will become the second fastest-growing economy in Asia in 2016, second only to India.

The report states that the country is moving onwards and upwards although global growth is likely to remain flat at 2.9 % in 2016.

Consumption is likely to remain the biggest growth driver in 2016, closely followed by investment. However, net exports are likely to remain flat.

The bank’s economists are optimistic about the economic outlook for the country, with strong FDI expected to continue in 2016.

“We believe Vietnam is an attractive destination for investment, a view, which is echoed by our clients, and we expect strong FDI inflows in 2016 as well” Nirukt Sapru CEO of Standard Chartered Bank Vietnam said.

He regards Vietnam as one of the few prime investment opportunities in an otherwise uninspiring global economy, and expressed his belief that the State Bank of Vietnam’s recent decision to set a daily reference rate for the Vietnamese dong will allow it greater flexibility to respond to increasingly volatile market conditions.

Vu Viet Ngoan, Chairman of the National Financial Supervisory Commission, pointed to the modest increase of domestic economic growth due to a range of unsettled internal bottlenecks and challenges caused by the global economy.

He said the FDI sector continues to be the main contributor to national economic growth.