Việt Nam’s fiscal deficit, including principal repayments, would come in at 6.6 per cent of GDP in 2019 and 2020, up from 5.9 per cent in 2018, Fitch Solutions Macro Research forecast.
The Ha Noi-HCM City high speed rail project will benefit the country’s economy, but there are several challenges to implementation of the mega project, including financing, attracting private sector interest and a weak business case.
Viet Nam’s self-sufficiency for crude oil could come to an end due to exploitation that could turn the country into a net importer of crude oil for the first time.
Viet Nam’s banking sector earnings growth is likely to moderate this year following a sterling year in 2018 due to expected slowing of loan growth to 13 per cent, experts forecast.
The State Bank of Việt Nam (SBV) bought US$8.35 billion from credit institutions between the beginning of this year and April 17 to build up the nation’s foreign reserve.
The Vietnamese dong would remain stable against the US dollar in the near future, supported by the country’s robust foreign direct investment (FDI), a healthy current account surplus, and by the central bank’s active intervention, experts forecast.
Viet Nam’s economy expanded by 7.1 per cent in 2018, but its increasing openness and reliance on foreign investment suggest it is unlikely to be spared from the global growth slowdown arising from rising trade protectionism and tighter financial conditions.