Standard Chartered Bank expects Vietnam's gross domestic product growthto accelerate to 6 percent in 2015, higher than its previous forecast of5.8 percent.
The increase is expected to be driven by the success of structural reforms, which are delivering tangible economic benefits.
Thebank made the announcement in a news release on Wednesday, adding thatthe forecast was highlighted in its recently published global researchreport entitled "The Year Ahead: Rekindling Animal Spirits".
Thereport revealed that Vietnam continues to move in the right directionand that the overall global growth is also set to rise this year,although it noted that international investor confidence remained low.
Thebank's economists are upbeat about the economic outlook for thecountry, with foreign investment likely to gather pace and exports torecover this year.
The report also pointed out thatmultinational companies have expressed a keen interest in increasinginvestment in the country, thanks to the country's geographicadvantages, low labour costs and operational costs, and increasingparticipation in regional trade pacts.
"We thinkVietnam's foreign direct investment and exports are likely to acceleratein 2015, leading to economic growth," said David Mann, the bank's headof macro-research in Asia.
"We also expect someprogress to be made on structural reforms in 2015, the last year of thecountry's five-year socio-economic development plan. This should improvedomestic sentiment," he added.
Nirukt Sapru, CEO ofStandard Chartered Bank Vietnam, said, "Vietnam is showing early signsof economic recovery and a transformation towards higher-value economicactivities.
"The government took important measuresin 2014 to improve business conditions, which are expected to bear fruitfrom 2015."
According to the global research,Vietnam's inflation, contained at 3.4 percent, is likely to provide moreroom for policy manoeuvrability, and the Trans-Pacific Partnershiptrade agreement should attract increased foreign direct investment.
The research also highlighted that the country's fiscal policyis likely to be accommodative as the authorities' focus remainspromotion of growth, and further progress on reforms is expected.-VNA
The increase is expected to be driven by the success of structural reforms, which are delivering tangible economic benefits.
Thebank made the announcement in a news release on Wednesday, adding thatthe forecast was highlighted in its recently published global researchreport entitled "The Year Ahead: Rekindling Animal Spirits".
Thereport revealed that Vietnam continues to move in the right directionand that the overall global growth is also set to rise this year,although it noted that international investor confidence remained low.
Thebank's economists are upbeat about the economic outlook for thecountry, with foreign investment likely to gather pace and exports torecover this year.
The report also pointed out thatmultinational companies have expressed a keen interest in increasinginvestment in the country, thanks to the country's geographicadvantages, low labour costs and operational costs, and increasingparticipation in regional trade pacts.
"We thinkVietnam's foreign direct investment and exports are likely to acceleratein 2015, leading to economic growth," said David Mann, the bank's headof macro-research in Asia.
"We also expect someprogress to be made on structural reforms in 2015, the last year of thecountry's five-year socio-economic development plan. This should improvedomestic sentiment," he added.
Nirukt Sapru, CEO ofStandard Chartered Bank Vietnam, said, "Vietnam is showing early signsof economic recovery and a transformation towards higher-value economicactivities.
"The government took important measuresin 2014 to improve business conditions, which are expected to bear fruitfrom 2015."
According to the global research,Vietnam's inflation, contained at 3.4 percent, is likely to provide moreroom for policy manoeuvrability, and the Trans-Pacific Partnershiptrade agreement should attract increased foreign direct investment.
The research also highlighted that the country's fiscal policyis likely to be accommodative as the authorities' focus remainspromotion of growth, and further progress on reforms is expected.-VNA
