|A local bank employee counts money. The US$/VND exchange rate remains stable, trading near the midpoint of the trading band. — Photo laisuat.vn
HA NOI (VNS)— Viet Nam's average inflation this year will rise to 7.5-8 per cent, said the Australia and New Zealand Banking Group Limited, commonly called ANZ, in its latest monthly report.
The bank also raised Viet Nam's economic growth rate to 5.6 per cent from 5.5 per cent. The revision happened after Fitch Ratings in January revised its outlook to positive B+ from stable B+, citing improvements in the macroeconomic stability of Viet Nam.
Meanwhile, Viet Nam targets an inflation rate of 7 per cent and 5.8 per cent GDP growth this year.
ANZ also saw domestic demand slowly gaining traction and the government's more expansionary policies lending further support to domestic demand.
ANZ expected foreign direct investments (FDIs) to continue pouring into the country this year as the government is expected to approve the amendment to raise the foreign ownership limit of some industries. As of January 20, registered FDIs totalled US$397.1 million, up from $257.1 million over the same period in 2013.
Manufacturing, accounting for around 70 per cent of the IP index, expanded more than 9 per cent year-on-year in 2013. The bank also remained constructive in its outlook of the sector as it reaps the benefits of FDIs.
In terms of foreign trade, ANZ reserved a forecast until March to assess the state of external demand because they argued that trade numbers in January and February would likely be distorted due to the celebration of the Tet (Lunar New Year) celebration. — VNS