Strong growth tipped for Vietnam in 2018, 2019

August 8, 2018

HO CHI MINH CITY – ANZ Bank is forecasting strong GDP growth for Vietnam this year and next as Vietnam continues to attract FDI inflows and expand its manufacturing base. 

Factors contributing to Vietnam’s positive long-term outlook include favourable demographics, an educated workforce, ongoing economic reforms, and benefits from free trade agreements, the bank says.  

“On the other hand, the near-term challenges include having to ensure that inflation remains contained, credit growth is not too strong above trend, and that the balance sheets of the financial sector are strengthened.”   

In terms of monetary policy, ANZ is expecting the State Bank of Vietnam to keep the policy rate at 6.25% in 2018, but to raise it to 6.75% next year to keep inflation in check.

ANZ is forecasting USD/VND at 23,600 by end-2018 and 23,900 by end-2019.   www.live.anz.com (ATI).