Economy forecast to enter new recovery cycle

The centre revealed its forecast at a workshop in Hanoi on Wednesday. Gross domestic product growth is forecast to range from 6.5 percent to 7 percent in 2016-2020, while inflation will remain within 5-7 percent, while state budget overspending will be reduced to 4.8 percent of GDP by 2020.

Vietnam’s international economic integration is forecasted to shift from regional to trans-regional via the possible TPP or new FTAs. Vietnam’s exports will have many advantages after the FTA with the EU comes into effect. However, these opportunities are only realised if Vietnam improves its competitive capacity.