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 Vietnam economic growth to rebound by 2016:

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Join date : 2011-08-09

PostSubject: Re: Vietnam economic growth to rebound by 2016:    Tue Mar 04, 2014 11:52 am

Vietnam economic growth to rebound by 2016:

Ernst & Young

Friday, February 14, 2014 10:00
Vietnam’s economy should be growing at a rate of 7 percent again by 2016, according to a report by global accounting firm Ernst & Young.

The UK-based firm, which placed the country fourth on its list of 25 potentially vulnerable fast-growing economies, expects faster economic growth from this year as policy makers are making efforts to reduce the fiscal deficit, continue curbing inflation, and bring down borrowing rates.
The report comes after two years of relatively sluggish economic growth hovering around 5 percent.

The upturn will be slow this year with rising imports offsetting stronger export performance and public sector inefficiency, according to the report.

A strong rebound in foreign direct investment will calm concerns about the stability of the dong, the report predicts.
Accordingly, stable exchange rates will allow inflation to continue to subside, ensuring a return to real wage growth in 2014-17.
According to the report, as a whole, the world's rapidly growing economies were set to rebound to an average growth rate of 4.7 percent this year, and top 5 percent in 2015.
But the report also forecast that the figures would be limited to 3.7 percent and 2.8 percent if the markets react badly to global monetary tightening.

Vietnam remained in fourth place on the firm's list of 25 most rapidly-growth markets most exposed vulnerability from last year.
The main economic problems are external debt, government debt, inflation, the growth of credit markets, and the lack of foreign reserves to cover imports.


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