Hanoi (VNA) –Vietnam’s economy continues to showfundamental strength, according to the East Asia-Pacific Economic Updatereleased by the World Bank via a teleconference connecting regional countries,including Vietnam, on October 4.

The report said Vietnam’s medium-term outlook remainspositive. Real gross domestic product growth is projected to accelerateslightly to 6.3 percent in 2017, underpinned by buoyant domestic demand,rebounding agricultural production, and strong export-oriented manufacturing,aided by a recovery in external demand, which will be partially offset bydeclining oil production.

The current account is expected to remain in surplus, albeitat a lower level as stronger import growth resumes. Over the medium term,growth is projected to stabilise at around 6.4 percent in 2018-2019,accompanied by broad macroeconomic stability. Barring extreme weather-relateshocks, poverty is expected to fall further.

It added that domestic and external risks call for continuedmacro-economic prudence. In view of resilient growth momentum, solidifyingmacro-economic stability and rebuilding policy buffers should remain theforemost priority. Lowering the fiscal deficit will help to contain risingrisks to fiscal sustainability and provide fiscal space to accommodate futureshocks.

WB Vice President for the East Asia-Pacific Victoria Kwakwasaid challenges to countries are how to achieve goals of short-term growth andreduced medium-term risks to lay solid foundation for sustained and inclusivegrowth.

Authors of the report called for removing short-term growthmeasures and addressing financial risks. They underscored the importance ofdeveloping tourism and strengthening regional integration to minimise risksbrought about by protectionism.

In order to achieve the goal of sustained and inclusivegrowth, they suggested abolishing extreme poverty, providing quality servicesand strengthening social security to minimise shocks’ impacts.-VNA