WB maintains its 5.5% growth forecast for Vietnam

Vietnam’s economic growth this year is likely to be 5.5 percent, the World Bank’s updated report on the East Asia-Pacific economic situation said November 4.

Workers process cashew nuts for export at Thanh Le Export Farm Produce Processing Enterprise, Binh Duong Province. Vietnam’s 2009 GDP may grow by 5.5 percent this year, said the World Bank. (Photo: Tuoi Tre) 

The report said Vietnam’s forecast growth was the same as the rate the bank projected in April.  

Vietnam has overcome the global financial and economic recession relatively well, the report said.

The bank said that positive signs of recovery have been seen in Vietnam as a result of the government’s efforts to support economic activities.

The Vietnamese government provided a stimulus package that included an interest rate subsidy, tax breaks and additional capital spending, the WB said. 

As a result, the country saw its GDP grow by 4.5 percent in the second quarter and 5.8 percent in the third.

For the January-September period, the overall GDP growth increased 4.6 percent from a year earlier, the bank said.

Asked to comment on the second stimulus package Vietnam has initiated, the bank’s chief economist for East Asia and the Pacific, Vikram Nehru, said: “The new package will not influence the WB’s forecast for Vietnam’s economic growth.“

He recommended that East Asian countries, including Vietnam, should continue to carry out economic stimulus programs.

He also advised that Vietnam should be cautious in running its fiscal and monetary policies.

By B. Minh – Translated by Truc Thinh

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