Vietnam's exports are calculated to grow an additional 30% by 2030 if the TPP is enacted. (Photo: tinnhanhchungkhoan.vn)
Vietnam is among the countries having the strongest growth prospects, with its GDP
expected to expand at an average of 6.3% in the 2016-2018 period, the World Bank
has said in its “Global Economic Prospect” report.
“Contributing to the gains are rapid investment growth buoyed by robust confidence and FDI
, consumption growth fueled by solid labor markets, and export growth as Chinese FDI projects in export industries come onstream,” says the report.
Source: World Bank
The World Bank added that Vietnam and Malaysia would post the most benefits from the Trans-Pacific Partnership (TPP) agreement if it is enacted. Vietnam would get the biggest percentage boost to its economy, about 10% by 2030, as its textiles and apparel industry gets new preferential access to the U.S. and other major markets.
The report pointed out risks to the forecast, which include a faster-than-expected slowdown in China and tightening global financing conditions.
HSBC has forecast Vietnam’s GDP to expand 6.7% year-on-year in 2016, in line with the government’s growth target, as the dual engine of domestic demand and exports should stay strong. The bank raised its GDP growth forecast for Vietnam by 0.1 percentage point to 6.8% in 2017.