|Goods are loaded at Saigon Port. Standard Chartered Bank expects Viet Nam's economic growth to accelerate to six per cent in 2015. — Photo baomoi.com
HA NOI (VNS) — Standard Chartered Bank expects Viet Nam's gross domestic product growth to accelerate to 6 per cent in 2015, higher than its previous forecast of 5.8 per cent.
The increase is expected to be driven by the success of structural reforms, which are delivering tangible economic benefits.
The bank made the announcement in a news release on Wednesday, adding that the forecast was highlighted in its recently published global research report entitled "The Year Ahead: Rekindling Animal Spirits".
The report revealed that Viet Nam continues to move in the right direction and that the overall global growth is also set to rise this year, although it noted that international investor confidence remained low. The bank's economists are upbeat about the economic outlook for the country, with foreign investment likely to gather pace and exports to recover this year.
The report also pointed out that multinational companies have expressed a keen interest in increasing investment in the country, thanks to the country's geographic advantages, low labour costs and operational costs, and increasing participation in regional trade pacts.
"We think Viet Nam's foreign direct investment and exports are likely to accelerate in 2015, leading to economic growth," said David Mann, the bank's head of macro-research in Asia.
"We also expect some progress to be made on structural reforms in 2015, the last year of the country's five-year socio-economic development plan. This should improve domestic sentiment," he added.
Nirukt Sapru, CEO of Standard Chartered Bank Vietnam, said, "Viet Nam is showing early signs of economic recovery and a transformation towards higher-value economic activities.
"The government took important measures in 2014 to improve business conditions, which are expected to bear fruit from 2015."
According to the global research, Viet Nam's inflation, contained at 3.4 per cent, is likely to provide more room for policy manoeuvrability, and the Trans-Pacific Partnership trade agreement should attract increased foreign direct investment.
The research also highlighted that the country's fiscal policy is likely to be accommodative as the authorities' focus remains promotion of growth, and further progress on reforms is expected. — VNS