WB, ADB predict positive outlook for Vietnam's FDI attraction
According to the reports of the World Bank and the Asian Development Bank (ADB) revealed recently pointed out that they are optimistic about Vietnam’s economic outlook thanks to strong foreign direct investment (FDI).
Vietnam's economy increased quarter-on-quarter since early this year, from 5.48% in the first quarter to 5.78% in the second quarter, and to 6.4% in the third quarter.
Prime Minister Nguyen Xuan Phuc last week instructed greater efforts from ministries, localities, and enterprises to reach a modest economic growth of 6.3-6.5% this year, which is smaller than last year’s 6.68%.
The Government leader asked the Electricity of Vietnam to ensure sufficient electricity for the entire country from now until 2020. Leaders of ministries and localities are also required to continue devising specific actions in favour of enterprises and people.
The Ministry of Planning and Investment (MPI) last week submitted a scenario for 2016 growth to the government for discussion, based on different growth expectations in the last quarter of 2016.
According to Minister of Planning and Investment Nguyen Chi Dung in the remaining three months, there is still some room to boost the national economy, including FDI, disbursement of state budget investment capital, and government bonds, as well as improvement of the local demand and consumption.
FDI commitments for the country in the first nine months of 2016 rose to 16.43 billion USD and the disbursed sum hit 11.02 billion USD, up 12.4% year-on-year.
The figures are expected for this year to be about 24 billion USD and 15 billion USD, respectively, which are higher than last year’s respective figures of 22.76 billion USD and 14.5 billion USD.
The World Bank last week forecast that Vietnam’s economy is expected to grow only 6% next year, and also 6.3% in 2018.
In its update on Vietnam’s economy released in late September, the Asian Development Bank (ADB) also predicted that the economy may rise only 6% this year, and grow to 6.3% next year.
However, both banks are optimistic about the country’s outlook thanks to strong FDI.
“Vietnam’s medium-term outlook remains positive,” said Sebastian Eckardt, lead economist for the World Bank in Vietnam. “FDI has accelerated in recent months, reflecting positive investor sentiment about Vietnam’s deeper economic integration.”
Both the ADB and the World Bank predicted that buoyant FDI inflows are expected to drive higher growth in manufacturing and construction until the year’s end.
Much of this investment is directed to manufacturing to generate a steep rise in production, and exports of mobile phones, electronics, and other products.
FDI contributes about 18% of Vietnam’s GDP, nearly a quarter of total investment, two thirds of total exports and millions of direct and indirect jobs, according to the World Bank.
Prime Minister Nguyen Xuan Phuc last week instructed greater efforts from ministries, localities, and enterprises to reach a modest economic growth of 6.3-6.5% this year, which is smaller than last year’s 6.68%.
The Government leader asked the Electricity of Vietnam to ensure sufficient electricity for the entire country from now until 2020. Leaders of ministries and localities are also required to continue devising specific actions in favour of enterprises and people.
The Ministry of Planning and Investment (MPI) last week submitted a scenario for 2016 growth to the government for discussion, based on different growth expectations in the last quarter of 2016.
Photo for illustration
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FDI commitments for the country in the first nine months of 2016 rose to 16.43 billion USD and the disbursed sum hit 11.02 billion USD, up 12.4% year-on-year.
The figures are expected for this year to be about 24 billion USD and 15 billion USD, respectively, which are higher than last year’s respective figures of 22.76 billion USD and 14.5 billion USD.
The World Bank last week forecast that Vietnam’s economy is expected to grow only 6% next year, and also 6.3% in 2018.
In its update on Vietnam’s economy released in late September, the Asian Development Bank (ADB) also predicted that the economy may rise only 6% this year, and grow to 6.3% next year.
However, both banks are optimistic about the country’s outlook thanks to strong FDI.
“Vietnam’s medium-term outlook remains positive,” said Sebastian Eckardt, lead economist for the World Bank in Vietnam. “FDI has accelerated in recent months, reflecting positive investor sentiment about Vietnam’s deeper economic integration.”
Both the ADB and the World Bank predicted that buoyant FDI inflows are expected to drive higher growth in manufacturing and construction until the year’s end.
Much of this investment is directed to manufacturing to generate a steep rise in production, and exports of mobile phones, electronics, and other products.
FDI contributes about 18% of Vietnam’s GDP, nearly a quarter of total investment, two thirds of total exports and millions of direct and indirect jobs, according to the World Bank.
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