Vietnam's industrial production achieved 9.9 per cent growth, mainly because of the boost in production of FDI firms in the first half of this year. Disbursement was also carried out at record-breaking speed, with the ADB citing greater investment inflows and improved consumer confidence as providing evidence for its optimism.
However, the country will face several challenges to maintain the high growth rate, including unstable global economy and difficulties plaguing Vietnam’s partners China and Japan. The ADB suggested that Vietnam should focus on restructuring its public sector and supporting private businesses.
The bank added that Vietnam’s participation in free trade agreements will open up new markets for Vietnamese goods, but this would also mean more competition. Therefore restructuring remained crucial if Vietnamese products in all sectors were set to benefit from increased international integration.
