Deutsche Bank: Growth to reach 6.4%

                                                            Photo: db.com

Bank's 2017 forecast based on sustainable recovery of agriculture and exports.   

Deutsche Bank has forecast that Vietnam’s GDP will grow 6.4 per cent this year, exceeding the 6.21 per cent recorded in 2016.

Ms. Juliana Lee, Senior Economist at Deutsche Bank, wrote in the Macroeconomic Prospects report that growth would be based on the sustainable recovery of agriculture and exports.

“We recognize that Vietnam continues to deploy improvement plans to boost economic growth potential in the long term,” she said.

However, when Vietnam achieves significant improvements in economic reform, with supporting foreign capital inflows into the country and increasing exports, the value of the Vietnam dong (VND) will increase.

State-owned enterprise (SOE) reform is very important for the country’s financial situation because it will increase efficiency in public spending and bolster the proceeds from SOE equitization.

Ms. Lee emphasized the importance of resolving bad debts and boosting credit risk management in ensuring the stability of the banking system if interest rates rise in the medium and long terms. “Restructuring banks and resolving bad debts should drastically increase growth but policies need improvements,” she said.

Conditions for business and investment in Vietnam are favorable, according to Senior Economists at Deutsche Bank.

Deutsche Bank offers trade finance services, cash management and securities custody services as well as business consulting services for enterprises operating in Vietnam.

by Hai Van / VET