Vietnam’s economy will grow at 6.5 percent in 2017 and expand to 6.7 percent in 2018, according to the Asian Development Bank (ADB)’s “Asian Development Outlook 2017” report.

At the press conference

The figures were revealed by ADB’s economic specialist Aaron Batten at a press conference on economic development in Vietnam – Asia in 2017, which was held in Hanoi on April 10.  

The country’s economy will be driven by the development of domestic manufacturing, construction, retails and wholesales, banking and tourism, the report noted. 

Foreign direct investment will boosts the domestic manufacturing and Vietnam’s exports earnings.

In addition, the number of middle-class Vietnamese will double to reach 33 million people in 2030, contributing to the increase of personal expenditure and retails.

Meanwhile, agricultural produce is projected to pick up somewhat in 2017 given the outlook of higher global food demand. However, the agriculture sector of the country will continue its slow growth compared to other sectors, dragging down the economy.

Major transformation in agriculture sector is a vital element to lifting Vietnam economic growth and enabling it to graduate to upper-middle-income status, according to ADB.

Achieving such a transformation requires addressing main policy challenges, including rising competitiveness in input supply, post-harvest processing and the marketing of produce, said Eric Sidgwick, ADB Country Director for Vietnam.

He also suggested Vietnam expanding its rural infrastructure and supporting agriculture products while launching more sustainable natural resource management. 

Simultaneously, it is necessary for Vietnam to use effectively its existing labour and natural resources, he noted.

VNA