HCM City – Standard Chartered Vietnam in Ho Chi Minh City on January 17 issued a global economic report, forecasting that Vietnam’s GDP will expand 6.8 percent in 2018.
Nirukt Sapru, the bank’s CEO for Vietnam and ASEAN and South Asia Cluster Markets, said almost all macro-economic indicators of Vietnam improved in 2017, helping the country minimise risks of market volatility and increase competitiveness in export in comparison with other ASEAN member nations.
Increasing attraction of foreign direct investment (FDI) and the State Bank of Vietnam’s management ability and policies have contributed to building the trust in the business community, the report said.
Vietnam’s manufacturing sector was predicted to reach a double-digit growth in 2018 thanks to FDI flows and increasing demand of electronics in global markets.
The bank also forecasted that Vietnam is likely to lure nearly 15 billion USD in FDI this year, mainly in term of electronic production.
The service sector will also be one of the main contributors to the nation’s GDP growth, it noted.
According to Chidu Narayanan, economist for Asia at Standard Chartered Bank, Vietnam is benefiting from joining free trade agreements (FTA) in the region and the world.
He said the young, well-educated workforce and low costs will also help Vietnam attract more FDI in the near future.
Photo: Standard Chartered Bank, Vietnam