ADB: Vietnam Economy to Grow 7 per cent, Inflation to Rise 15.6 per cent This Year

The Asian Development Bank in its Asian Development Outlook 2008 report, which was released Wednesday, forecast that Vietnam’s real GDP growth rate will be 7 per cent this year and inflation will hit 15.6 per cent

 

Vietnam will continue to make rapid progress in economic development in the medium, long-term, supported by strong economic fundamentals, large inflows of foreign direct investment, Ayumi Konishi, ADB country director said.

 

For 2009, the Southeast Asian country’s economy will see a more favorable growth rate of 8.1 per cent, inflation of 7.6 per cent, and the current inflation will ease gradually from now to the end of this year, Aymui Konishi noted.

 

The ADB director was optimistic about the government of Vietnam’s efforts to curb high inflation and pointed out that Vietnam will have to overcome two challenges: high inflation and adverse impacts from the global economic slowdown.

 

The World Bank is also upbeat that Vietnam’s economic growth rate will be 7.5 per cent-8 per cent this year with inflation of 15.7 per cent.

 

Confronting difficult economic conditions, the government plans to lower the economic growth targets to 6.5 per cent-7.5 per cent from 8.5 per cent-9 per cent and it will propose the National Assembly, the highest legislative body to approve with inflation at less than 12.6 per cent this year, the local Thanh Nien newspaper cited Minister of Planning and Investment Vo Ho Phuc as saying.

 

The Ministry of Industry and Trade also plans to cut imports to narrow the trade deficit this year. (VNS, Thanh Nien Daily)