International bank Standard Chartered has forecast that Vietnam’s economy will expand by 6.6% in 2017, buoyed by strong growth in the manufacturing and construction sectors.
The banking and financial services company said on January 13 that the Vietnamese economy would pick up next year after slowing down as a result of drought in 2016.
It predicted that global growth in 2017 would be largely the same as in 2017 at 1.5% with the main drivers being emerging markets.
Marios Maratheftis, an economist at Standard Chartered, said 2017 promised to be an exciting year, but also a year full of instability, yet the bank was upbeat about Vietnam’s economic outlook, believing that the economy is getting back on track.
Nirukt Sapru, chief executive of Standard Chartered Vietnam, said most of Vietnam’s macroeconomic indicators had improved recently and progress continued to be made in maintaining macroeconomic stability.
He believed that Vietnam would continue to be an attractive destination for investment.
Standard Chartered forecasted that foreign direct investment in Vietnam might slow in 2017 but that it would remain high at about US$10 billion, adding that regional trade agreements have benefited Vietnam with significant foreign investment.
The bank said the negative impact of the Trans-Pacific Partnership not going through on Vietnam would be minimal because foreign investment had already flowed strongly to Vietnam in anticipation of the trade pact.
Photo: CBR Investment AG