ANZ predicts 6.5% GDP growth for Vietnam in 2015

16:20 | 21/04/2015 Society

ANZ has forecast an annual GDP growth of 6.5 % for Vietnam in 2015 and 2016, with the bank's economic experts saying the actual result may be even better when taking into account the notable achievements of the first quarter.

ANZ predicts 6.5% GDP growth for Vietnam in 2015

Lao Dong newspaper quoted ANZ’s latest report as saying that the GDP growth in the first three months of the year, at 6.03 % year-on-year, exceeded all previous forecasts, adding that increases in many indexes reflect a recovery in domestic demand. 

In the first quarter, the industrial sector saw a three-year high increase of 9 %, while the consumer confidence index was higher than the average figure for 2014, and retails revenues posted the highest increase seen in the past five years, at 12.8 %. 

The report also noted a trade deficit, primarily due to imports of machinery, equipment, components and spare parts for production. This suggests that growth in the manufacturing sector will move towards higher exports. 

Credit growth in the first quarter rose 1.9 % year-on-year and the interbank interest rate also rose, indicating recovery in domestic demand for financial leveraging and business expansions.

Source VOV News

Foreign investment also resumed its flow, with US$1.748 billion registered in March, the report said, adding that FDI flow in production activities would help boost export in the mid-term. It also urged more investment in domestic production capacity in the long run.