Efficiency in retail growth, domestic demand is relatively stable and the construction industry is supported by credit. Macroeconomics is maintained, reducing price pressures in recent months despite the price increase, especially food prices. WB forecasts that inflation in Vietnam this year will be lower than 5%.
Vietnam's inflation rate in 2016 will be lower than 5%, while economic growth at about 6%, the World Bank predicted. Although growth forecast to be slow but the medium-term economic outlook for Vietnam remains positive, the bank said.
The mind-term economic prospects will be improved as the Trans-Pacific Partnership Agreement (TPP) and other Free Trade Agreements allow Viet Nam to access the large markets as well as attract foreign direct investment into this Southeast Asian country.
However Vietnam’s market will be affected by the recent drought and saltwater intrusion and decrease in the processing industry, said Sebastian Eckardt, a senior economist from the WB Group in Vietnam. He also highly spoke of the State Bank of Vietnam's flexible exchange rate management and fast response to global changes and negative impacts on Vietnamese Dong.
To maintain the high economic growth rate, Vietnam needs to continue restructuring to promote labor productivity, said Achim Fock, the WB’s Acting Country Director for Vietnam. Currently, Vietnam is reforming State-owned enterprises (SOEs). In the first four months of 2016, 34 SOEs were equitized.
For the event of Brexit, the World Bank said if this had happened, it doesn't impact on Vietnam's economy. There will be some fluctuations in exchange rates, stock exchange, but considering the price formula on the structure of financial cash flow, the Vietnam economy is not much risk.
