Vietnam’s economy to grow 6.4% in 2017
VOV.VN - Vietnam’s economy is predicted to grow 6.4% this year, according to a report by the Vietnam Institute for Economic and Policy Research.
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At a discussion to release its report for macro-economy in the 4th quarter and 2016 in Hanoi on January 16, the Institute said the manufacturing sector will be a bright spot in Vietnam’s economy and inflation rate will be 5.9% this year.
However, Director of the Vietnam Institute for Economic and Policy Research under the Vietnam National University’s University of Economics and Business Nguyen Duc Thanh said the Vietnamese economy needs to take caution against external shocks this year due to the global economic uncertainties.
The report warned of the possibility of the US Federal Reserve’s interest rate hike three times this year, which could push up the US$ rate in Vietnam, thereby hurting Vietnam’s exports and deteriorating trade deficit.
In order to maintain the value of Vietnamese dong in the context of rising US$ rate, the State Bank of Vietnam could increase deposit rates but this could pose risks and cause a ripple effect to the real estate sector, it said.
The report said Vietnam’s economy grew 6.2% in 2016, lower than the 6.68% level of 2015 and the government target of 6.5%.