ICAEW forecasts Vietnam’s economy to grow by 5.4% in 2014
(VOV) - Increased net exports will help Vietnam’s economy achieve growth of 5.4% in 2014, according to the first quarterly report of ICAEW Economic Insight – South East Asia.
ICAEW is a highly acclaimed leading professional membership organization and a founding member of Chartered Accountants Worldwide and the Global Accounting Alliance.
The report states that a healthier banking sector in Vietnam with a lower proportion of non-performing loans will provide the underpinning and solid impetus for GDP growth this year.
In the next few years, Vietnam is expected to become more transparent towards international investors, which will entice new capital into its economy, the report said.
Meanwhile, increased government spending, partially due to the equitisation of state-owned assets, will also pump money into the economy and support higher growth rates. As a result, we expect annual GDP to increase by 5.7% in 2015 and 2016, the report concluded.
Douglas McWilliams, Chief Economist of the ICAEW and the Centre for Economics and Business Research (CEBR) forecasts that Vietnam’s economy will grow every year over the next few years thanks to a low-cost, highly skilled and disciplined workforce, and incentive policies to attract capital sources from investors.
Vietnam will continue enjoy strong economic growth and FDI inflows from investors thanks to these advantages, he said.