Think tank forecasts some growth for Vietnam
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A government think tank has pegged economic growth at 6.46 percent this year thanks to the country’s success in containing the Covid-19 outbreak and maintaining stability.
Vietnam is one of the fastest recovering economies in Asia, the Central Institute for Economic Management (CIEM) said in a report.
In the best-case scenario, credit growth would be 13 percent against 10.1 percent last year, it said.
But it also warned of risks that could hamper growth, like the unpredictable global economic situation as the pandemic situation remains severe in many countries and possible anti-dumping and countervailing investigations by the U.S. and other countries.
Several international organizations have forecast a strong recovery for Vietnam this year, with lender HSBC forecasting growth of 7.6 percent. The International Monetary Fund and Asian Development Bank have forecast 6.5 percent and 6.1 percent growth.
The government has set a target of 6.5 percent.
Questions & Answers
Q.What is the primary reason given for Vietnam's economic growth forecast this year?
What is the primary reason given for Vietnam's economic growth forecast this year?
The think tank attributes the forecast growth to Vietnam's successful containment of the Covid-19 outbreak and its ability to maintain economic stability within the country. This has positioned it as one of Asia's fastest recovering economies.
Q.What are the main risks identified that could potentially hinder Vietnam's economic growth?
What are the main risks identified that could potentially hinder Vietnam's economic growth?
Potential risks include the uncertain global economic situation, as the pandemic persists severely in many nations. There is also a threat of anti-dumping and countervailing investigations from countries such as the U.S.
Q.How does the think tank's growth forecast compare to the government's target for Vietnam?
How does the think tank's growth forecast compare to the government's target for Vietnam?
The government think tank forecasts economic growth at 6.46 percent for the current year. This figure is slightly below the government's official target, which has been set at 6.5 percent.
Q.Which international organisations have also provided economic growth forecasts for Vietnam?
Which international organisations have also provided economic growth forecasts for Vietnam?
HSBC has forecast 7.6 percent growth. Also, the International Monetary Fund and the Asian Development Bank have projected growth rates of 6.5 percent and 6.1 percent respectively for Vietnam this year.
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