Vietnam’s shift from a centrally planned economy to a market economy has transformed it into a lower-middle-income country. Vietnam’s economy continues to show fundamental strength, supported by robust domestic demand and export-oriented manufacturing. Vietnam is now one of the most dynamic and fastest-growing emerging markets globally. In 2018, a continued stellar expansion in manufacturing output, propelled by buoyant export demand for electronics and supported by robust FDI inflows, primarily fuelled solid growth. 2018’s robust growth is expected to spill over into 2019 and 2020, thanks to healthy private consumption supported by strong private credit growth and rising incomes. The industrial sector also continues to expand at a stellar pace, supported by strong FDI inflows. Vietnam’s 2011-2020 Socio-Economic Development Strategy – a 10-year strategy – highlights the need for structural reforms, environmental sustainability, social equity and macroeconomic stability. The Socio-Economic Development Plan for 2016-2020, approved in April 2016, looks to accelerate reforms.
Sources: World Bank, Fitch Solutions
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