Vietnam's economic growth is forecast to slow down this year. (Photo: Internet)
Vietnam’s economic growth
has signaled tapering off since the fourth quarter of last year and is forecast to stay lower than that in 2015, the Vietnam Financial Supervisory Commission said in its latest report.
The country’s economy is poised to receive a boost from recently-signed free trade agreements, increasing investment from the private and foreign sectors, and continued improvements in the business environment thanks to new legislations, the financial watchdog said.
However, its economy faces strong headwinds from the slowdown of the agricultural sector and farm produce exports, the struggling business community, limited export performance of domestic enterprises, and the sluggish overhaul of the economy, it added.
Regarding the foreign currency market, the commission reckoned that the State Bank of Vietnam
’s new interbank forex rate has dealt better with volatility of the global financial market.
Nevertheless, pressures on the USD/VND rate stay high on the back of possible strengthening of the greenback and the possibility of further depreciation of the Chinese yuan.
The commission commented that the recent net sale of foreign investors in the local stock market did not mean capital flight from the country.
“Overseas investors will return to be net buyers when the international financial market stabilizes in the context of steady momentum of Vietnam’s economy and businesses,” said the commission.
Vietnam’s gross domestic product (GDP
) expanded 6.68% in 2015, beating the government’s projection of 6.2%. Its GDP is targeted to increase 6.7% this year.
In a report late last month, Vietcombank Securities Company predicted the country’s economy to grow 6.3%-6.4% this year, partly due to China’s struggling economy.