09:28 | 18/01/2018 Society
(VEN) - Standard Chartered Bank expects Vietnam’s economy to grow strongly by 6.8% in 2018, buoyed by still-strong manufacturing activity.
This forecast was highlighted at Standard Chartered’s Global Research Briefing held on January 17 in Ho Chi Minh City, drawing senior representatives from over 100 local and foreign corporate clients. The annual event discusses Standard Chartered’s recently published Global Focus - Economic Outlook 2018 report entitled “Beware of the dog”, and its latest Global Research report on Vietnam entitled “Vietnam in 2018 – Fast or furious?”.
The event is part of the 2018 Standard Chartered Global Research Briefing series, which is organised by the Bank in major ASEAN cities to provide its clients in-depth insight and analysis on global, regional and local socio-economic trends that will have an impact on international business and trade in the year ahead.
Nirukt Sapru, CEO Vietnam and ASEAN and South Asia Cluster Markets, Standard Chartered Bank said: “Most macro-economic indicators in Vietnam have improved in 2017, which has helped to minimise market volatility, increase Vietnam’s export competitiveness relative to other ASEAN economies, attract FDI, and create public confidence towards the State Bank of Vietnam’s management capabilities and policies. We are confident that the Vietnamese economy will remain one of the fastest growing in Asia in 2018.”
According to the latest macro-economic research report on Vietnam, manufacturing is likely to expand in double digits in 2018, supported by still-strong FDI inflows and robust global demand for electronics. Electronics export growth is projected to remain robust near-term, leading to a trade surplus and supporting overall growth. The Bank forecasts FDI inflows to stay strong this year at close to USD15 billion and the inflows to the manufacturing sector, particularly electronics manufacturing, to remain high in the medium term.
The study also expects steady growth in services to support overall growth, led by strong domestic trading activity. The services sector, which makes up close to 40% of the economy, rose by a robust 7.45% y/y in 2017, the fastest since the global financial crisis. Construction should also continue to increase this year and see a growth rate of slightly below 10%, after the moderate slowdown in full-year 2017.