WB economist positive for Vietnamese economy in medium term

The World Bank (WB) chief economist in Vietnam, Sandeep Mahajan has said he held a positive outlook for Vietnamese economy in medium term.

"The gradual improvement in gross domestic product (GDP) growth and continued macro-economic stability, with stepped up efforts to confront the rising pressures from rising public debt" are expected to see in medium term, the WB economist made the remark at a recent interview with Vietnamese government's e-Portal, reported Vietnam's state-run television VTV on Monday.

Specifically, Mahajan projected "Vietnam's GDP growth to come at around 6.2 percent in 2015, and inflation to remain moderate on account of low global energy and food prices, and gradual recovery in domestic private demand."

In addition, "a pick up in export growth and robust remittances will keep the current account in surplus," despite diminishing amount as stronger domestic economic activity boosts import growth, " said Mahajan.

The expert said "stronger macro-economic fundamentals, solid foreign direct investments in manufacturing sector and exports from the sector, as well as key reforms to the business climate" were attributed to Vietnam's recent stable economic growth.

However, he warned that "despite the recent improvements, the Vietnamese economy still performs below its potential."

Meanwhile, rising public debt levels are becoming a concern with its immediate root being the country's budget deficit, said the expert, citing that Vietnam's public and publicly-guaranteed debt was estimated at nearly 61 percent of GDP by the end of 2014. Endi