The report points out three main drivers of the recent growth: foreign direct investment, consumer confidence, and credit and pro-growth policies. However, the economy still faces short-term challenges such as a slowing global economy and narrowing macroeconomic buffers in terms of fiscal and monetary policies.
In the long-term, Vietnam needs to address low productivity and difficulties of domestic firms in integrating into global value chains. The report also notes that domestic firms will face increasing commercial pressures from recent free trade agreements.
The annual publication Asian Development Outlook analyses macroeconomic issues in developing Asia-Pacific with growth projections by country and region.
