World Bank sees VN growing 6.0%

Tuesday, Oct 06, 2015 11:47

Goods are transported at Cat Lai Port in HCM City for exports. Viet Nam's economy will grow at 6 per cent in 2015, WB predicts. — VNA/VNS Photo Hoang Hai

HA NOI (Biz Hub) — The World Bank is predicting that the Vietnamese economy will grow at a speed of 6 per cent in 2015, according to the East Asia and Pacific Economic Update released yesterday.

The country's poverty rate is expected to drop in regard to extreme poverty, which is currently defined as a living wage of US$1.90 per day or less. Extreme poverty levels are expected to taper off from 2.8 per cent in 2012 to 1 per cent in 2017.

Meanwhile, the population living on a daily wage between $1.91 and $3.10 is predicted to dwindle to 6.7 per cent in 2017 from 12.3 per cent in 2012.

Economic recovery and stable macro-economic conditions will further reduce poverty. However, slower agricultural growth will affect rural residents' incomes, thus increasing the urban-rural income gap, the WB said.

The report also pointed to challenges facing the country, such as slow growth, unstable elements spurred by the country's dependence on trade and decreases in the prices of rice and other farm produce.

It recommended that Viet Nam outline a plan to consolidate mid-term financial conditions while carrying out reforms to fortify finances for state-owned enterprises and banks.

Meanwhile, the WB expected the East Asia-Pacific region's economy to grow by 6.5 per cent in 2015, lower than the 6.8 per cent growth last year.

East Asia will create global momentum, as it accounts for almost two-fifths of the world's economic growth, the WB said.

It stressed that the region needs to prioritise prudent macro-economic management to tackle financial issues, as well as deepen economic restructuring with a focus on private investment.

"Growth in developing East Asia Pacific continues to be solid, but the moderating trend suggests policy makers in the region must remain focused on structural reforms that lay the foundation for sustainable, long-term and inclusive growth," said Axel van Trotsenburg, regional vice president of WB East Asia and Pacific.

The reforms are comprised of regulatory improvements in the finance, labour and product markets, as well as measures to intensify transparency and accountability, he said. — VNS

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