Vietnam surpassed its major economic goals in 2017, GDP target for 2018 at 6.5%

January 11, 2018

HO CHI MINH CITY - Vietnam fulfilled and surpassed major economic goals in 2017 with its GDP growth rate among the highest globally. The Government’s target of 6.5-6.7% GDP growth for 2018 looks feasible as the stable macro-economic environment will expectedly continue into next year, according to Vietnam Asset Management in its monthly report.

“Confidence of both foreign and local investors as well as domestic consumers has been strong, boosting investment and economic activities, VAM says.

“Externally, the steady recovery and improvement of major economies including the US, China, Japan, South Korea, etc. also helped. Though inflation was kept below target in 2017, we still need to watch it in 2018 given anticipated continued loose fiscal policy and the rising price of commodities.

“The stock market had an impressive performance in 2017, with total market capitalisation by year-end equal to 70.2% of GDP this year, exceeding the Government’s target of 70% set for 2020.

“Liquidity also surged strongly. New State divestments, IPOs and listings are expected to continue bolstering the market and investor sentiment in 2018 on the back of the supportive macroeconomic environment. We keep our positive view on the economy and the market for the coming year.”

For 2017, the VN-Index reaching a decade-high of 984.24 points at year-end, recording a gain of 48% YoY in local currency. Strong foreign inflows, with total net buying value ofUSD1.2 billion, were a key supporting factor to the market. Market liquidity also surged, as combined average daily trading value  moved up to USD223 million, from nearly USD140 million in 2016.

At the macro level, Vietnam registered impressive GDP growth of 6.81% in 2017, and met and exceeded other major macro-economic objectives. (ATI).