Vietnam’s GDP growth in 2019 is expected to be sustained by continued strong growth in manufacturing and services after robust growth in 2018. Manufacturing growth was driven by the electronics sector, while the services sector was propelled by the wholesale and retail industry and boosted by tourism. Management of administered prices helped dampen inflationary pressure in 2018. The external position continued to strengthen, benefiting from robust export performance and higher foreign investment. The fiscal deficit is expected to remain stable in 2019. Credit growth has moderated, which is in line with the State Bank of Vietnam’s lower credit growth target. Moving forward, the authorities should maintain policy efforts to enhance revenue potential and the SBV should continue supervision of lending to certain sectors. Continued structural reforms will help the economy address medium- to long-term challenges.
The 2018 Annual Consultation Report on Vietnam also includes topic issues on financial sector development, social insurance policy reforms, and monetary policy instruments in Vietnam.