Vietnam’s GDP in 2019 is on track to grow more than 7%, while inflation is estimated at 2.7 – 2.8%, according to Deputy Prime Minister Vuong Dinh Hue.

Overview of the meeting. Source: VGP.

“This would be a second consecutive year that Vietnam’s economy expands more than 7%, while the low inflation rate makes such economic growth more significant,” said Hue at a government meeting on December 25.

Under the calculation of the Ministry of Finance (MoF), the consumer price index (CPI), a gauge of inflation, is set to grow 2.73% this year, marking the lowest inflation rate over the last three years, posting 3.53% and 3.54% in 2017 and 2018, respectively.

The MoF attributed hikes in prices of consumer goods (food, beverage, tourism, public transportation fees, etc.), petroleum products, health services and construction materials to the increasing CPI.

In the first half of 2019, pork prices in Vietnam have been under pressure to grow due to the impacts of African swine fever that leads to a decline in supply.

Meanwhile, lower prices of other products and goods, as well as efficient state management in balancing the demand-supply of goods and services, are key to keeping inflation rate at low level, stated the MoF.

Previously, the Asian Development Bank (ADB) has revised up its forecast for Vietnam's economic growth from 6.8% to 6.9% for 2019, and from 6.7% to 6.8% for 2020 amid dim outlook for Asia.

The World Bank has also forecast Vietnam’s GDP growth at around 6.8% in 2019, while the government expected the economy to expand over 6.8%, reaching the upper limit of the 6.6 – 6.8% target range.