HÀ NỘI – The Ministry of Planning and Investment is targeting an economic growth rate of 6.4 per cent to 6.8 per cent for Việt Nam in 2018, according to a document sent to ministries and local authorities with guidelines to develop the socio-economic plan for 2018.

The ministry said that the economic growth in 2018 would continue to improve, fuelled by increases in manufacturing, construction, trade, banking and tourism sectors.

The global economic and trade growths were also expected to be higher in 2018 than 2017, creating favourable conditions that would boost the economic growth, especially exports, the ministry said.

In addition to this, the improving business environment, rapid international economic integration, increasing foreign direct investment and private investment, coupled with the Government’s determination to remove difficulties for firms will support production and trade, it said.

The ministry said that the agriculture, forestry and fishery sectors were anticipated to have good prospects with increasing prices in the global market.

Accordingly, the ministry has planned the gross domestic product (GDP) to grow at 6.4 per cent to 6.8 per cent in 2018, total export revenue to increase by 9 per cent to 10 per cent, trade deficit ratio to be below 3 per cent of the total export revenue and the total investments for social development to be at 33.5 per cent to 35 per cent of the GDP.

Vietnamese economy grew at 5.73 per cent in the first half of this year. To fulfil the growth rate target set at 6.7 per cent for the full year, the country must achieve 7.42 per cent growth rate in the second half, which is considered to be an ambitious goal.

Forecasts

HSBC in a report released on Wednesday lowered its GDP forecast for Việt Nam to 6 per cent this year, down from its previous forecast of 6.4 per cent.

This was largely due to the disappointing growth in the first quarter of this year, which hit a three-year low of 5.2 per cent.

However, the bank said that tourism would be a major driver for growth in the second half of this year. In addition to this, growth would also gain momentum from pick-ups in foreign investment and agricultural production in the second half.

“Overall, we believe Việt Nam’s growth prospects remain promising, despite recent hiccups, and can be sustained with a positive external environment and continuing economic reforms,” the bank said.

The Government of Việt Nam is taking bold measures to achieve the ambitious growth target for this year.

The central bank earlier this month cut several lending interest rates for the first time in three years to aid growth.

Besides this, the Government has planned to exploit more crude oil to boost growth.

Recently, the International Monetary Fund lowered its forecast for Vietnamese economic growth to 6.3 per cent from an estimate of 6.5 per cent published in May.

The World Bank has projected the Vietnamese economy to grow at 6.3 per cent this year.

The Asian Development Bank maintained its growth forecast for Vietnamese economy at 6.5 per cent in 2017 and 6.7 per cent in 2018. - VNS