Vietnam's economic growth is set to top ASEAN-5 this year.
Vietnam’s gross domestic product (GDP
) is expected to expand 6.3% this year, the highest rates among ASEAN
-5 countries that include Indonesia, Malaysia, the Philippines and Vietnam, according to the Organization for Economic Cooperation and Development (OECD).
The country’s GDP growth is set to slow to 6.1% in 2017, equal to that of the Philippines, says the Update of the OECD Economic Outlook for Southeast Asia, China and India 2016.
In the previous version in January, Vietnam’s economic growth
was projected at 5.9% in 2016 and 6.0% on average in the 2016-2020 period.
“Vietnam’s growth looks set to slow slightly, and the country is exposed to risks caused by low agricultural commodity prices and drought. The government is continuing the reform of state-owned enterprises and adjusting regulations on the financial sector and private sector in general,” says the Update.
Vietnam’s growth has been led by a rapid acceleration of fixed investment, strong foreign direct investment (FDI) inflows and robust consumption, according to OECD.
The report notes that real economic activity in Southeast Asia (ASEAN 10) is projected to grow at an average rate of 4.9% in 2016. India’s economy is expected to grow at 7.4%, while China’s growth is projected at 6.5% in 2016 as a result of the country’s economic ongoing process of rebalancing.