Macroeconomic Forecast Vietnam

June 2005 | Macroeconomic Forecasts

Vietnam will continue to show impressive growth rates during 2005, with BMI forecasting GDP growth to remain constant at 7.7%. However, significant downside risks remain to sustaining the expansionary trend. As Asia's third-largest oil producer, Vietnam should benefit from the higher oil price, but growth will be adversely affected if the rise in commodity prices leads to a slowdown in either of the country's main trading partners, the US or China. We therefore expect a slight slowdown into 2006, with internal reforms needed to liberalise the economy, boost competitiveness and assist Vietnam's entry into the World Trade Organisation.

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