HANOI, Dec. 11 (Xinhua) -- Vietnam is projected to post an economic growth of 6.7 percent this year as targeted by its top legislature, the World Bank (WB) said on Monday.
Stronger domestic demand, robust export-oriented manufacturing, and a gradual recovery of the agriculture sector are driving Vietnam's economy, which expanded by 6.4 percent in the first nine months of this year, according to "Taking Stock," the WB's bi-annual economic report on Vietnam released on Monday.
Over the medium term, the growth is projected to stabilize at around 6.5 percent, and inflation is expected to remain low. With public debt near the statutory limit of 65 percent of gross domestic product (GDP), Vietnam's government faces tight budget constraints for several years to come, says the report.
The decline in public investment, falling to 16 percent of total spending in the first nine months of 2017 from an average of 25 percent in recent years, may not be sustainable, as Vietnam needs significant investments in infrastructure to support future growth, according to the WB in the country.
A slow-down in structural reforms could also impact the ongoing recovery, especially given the weaker growth in investment. Enhancing macroeconomic resilience and structural reforms can lift Vietnam's growth potential over the medium term.
Vietnam has targeted a growth of 6.5-6.7 percent in its GDP next year, according to a resolution on socioeconomic development plan for 2018 passed by the top legislature in November.
The country is determined to post GDP growth of 6.7 percent in 2017, up from 6.21 percent in 2016, and 6.68 percent in 2015.