In a supplementary edition to the Asian Development Outlook 2019 (ADO), Vietnam is forecast to be the fastest growing economy in the Southeast Asian region this year.
Accordingly, the country’s GDP growth is projected to be at 6.8 per cent during the first half of the year. This strong figure is expected despite the local agricultural industry suffering a series of negative effects as a consequence of droughts and the spread of the African swine fever epidemic.
Asian Development Bank (ADB) economists also pointed that foreign direct investment (FDI) attraction is a key factor in helping Vietnam maintain its strong growth momentum. Evidence for this can be seen as FDI inflows into the country increased by 27 per cent during the first five months of the year.
The ADB forecasts that the nation’s GDP is expected to grow by 6.8 per cent in 2019 and 6.7 per cent in 2020. This prediction is similar to previous projections made by the ADO.
According to the report, the ADB maintains its growth forecast for developing Asia at 5.7 per cent in 2019 and 5.6 per cent in 2020, which are unchanged from its April forecast. These growth rates are down slightly from the 5.9 per cent growth seen in 2018.