“Fitch on Vietnam” forum discusses on Vietnam economy performance and prospect in 2018

08:55 AM 04/09/2018 |  Lượt xem: 3744 |  In bài viết |    Đọc bài viết send email  Gửi góp ý

Discussed at the forum, economic experts evaluated year 2017 as the breakthrough year of the Vietnamese economy. In 2017, Vietnam's macroeconomic management policy has improved and reaffirmed the position of the Government of Vietnam in focusing on maintaining macroeconomic stability, strong growth from the manufacturing sector. Exports and services are increasing, attracting foreign investment soared, focusing mainly on export in electronic industries; high foreign exchange reserves; foreign debt is also under strict control. Despite rising trade protectionism, the risk from the trade war between the United States and China, this could still be attractive to the Vietnamese economy as a global manufacturing hub. Vietnam's financial markets may benefit from a developing economy. In the past, the economy was dependent on bank loans. Currently, Vietnamese companies are moving to mobilize resources in the capital market.

Fitch primary analysist – Ms. Sagarika Chandra stated that in May 2018, based on the assessment of Vietnam's positive development prospects, Fitch Ratings upgrades Vietnam's sovereign credit rating from "BB-" to "BB". Fitch is confident in upgrading Vietnam's sovereign credit rating in 2018 since Vietnam maintains its macroeconomic stability, its ability to withstand external risks better and meet the criteria of finance. According to Fitch, Vietnam's GDP growth will increase by 6.8% in 2017 and is expected to grow by 6.7% in 2018.

Alongside with positive comments, economic experts also point out potential risks and challenges for the Vietnamese economy in the coming time. Sebasitan Eckart, World Bank's chief economist, commented that as the level of openness of the Vietnamese economy grows, the impact of external factors will also increase, such as the war trade, high oil prices, tightening monetary policy of the central bank.

Vu Cam Tho