HANOI, Sept. 25 (Xinhua) -- Despite a weaker external environment, Vietnam is forecast to maintain economic growth this year and next year at 6.8 percent and 6.7 percent, respectively, the Asian Development Bank (ADB) said in an update of its flagship annual economic publication launched on Wednesday.
In its Asian Development Outlook 2019 Update, the ADB kept its forecast for Vietnam's gross domestic product (GDP) growth unchanged, but revised down projection for Vietnam's inflation to 3 percent from 3.5 percent for 2019, and to 3.5 percent from 3.8 percent for 2020.
In spite of a slowdown in export growth and downturn in global trade, the Vietnamese economy remains healthy thanks to continued strength in domestic demand and sustained inflows of foreign direct investment, according to ADB country director for Vietnam Eric Sidgwick.
"Prospects for domestic consumption continues to be positive, supported by rising incomes, buoyant employment, and moderate inflation," Sidgwick was quoted in a press release by the ADB in Vietnam on Wednesday.
However, continuing global economic slowdown could shrink global trade, which will adversely impact the country's trade performance and economic growth.
According to the World Bank, Vietnam's real GDP growth for 2019 is likely to decelerate to 6.6 percent, driven by a weaker external demand and continued tightening of credit and fiscal policies. Inflation indexes are meant to be kept below the official inflation target of 4 percent this year.
Vietnam made GDP growth of 7.08 percent in 2018, the highest rate over the past 10 years, up from the annualized target of 6.5-6.7 percent, announced the country's General Statistics Office.
Vietnam's top legislature has set a target of attaining GDP growth of 6.6-6.8 percent in 2019.
