HANOI, July 1 (Xinhua) -- Amid rising global headwinds, Vietnam's economic growth momentum has been slowing since the beginning of this year, but outlook remains positive, according to the World Bank (WB)'s bi-annual economic report on Vietnam "Taking Stock" released here on Monday.
Amid re-escalation of trade tensions and rising financial volatility in the world, Vietnam's gross domestic product (GDP) growth has decelerated to a still robust 6.8 percent in the first quarter of 2019 from a vibrant 7.5- percent pace in the same period of 2018, and slower growth reflects several factors.
"Agricultural output decelerated due to the outbreak of African swine fever and a decline in international prices. Weaker external demand moderated growth of the export-oriented manufacturing sector as well as overall export performance," states the report.
Domestic investment appears to be slowed resulting from subdued credit growth and continued consolidation in public investment. Other macroeconomic indicators, such as more sluggish credit growth, subdued inflation and slower import growth are further signs of a cyclical moderation in economic activity.
Despite these signs of a cyclical moderation in growth, Vietnam's outlook remains positive, the report says. Real GDP growth for 2019 is forecast to decelerate to 6.6 percent, driven by a weaker external demand and continued tightening of credit and fiscal policies. Inflation indexes are meant to be kept below the official inflation target of 4 percent.
Vietnam is estimated to gain GDP growth of 6.76 percent in the first half of this year, down against the same period of last year, the country's General Statistics Office announced on June 28.
Vietnam made GDP growth of 7.08 percent in 2018, the highest rate over the past 10 years, up from the annualized target of 6.5-6.7 percent. Its top legislature has set a target of attaining GDP growth of 6.6-6.8 percent in 2019.
Standard Chartered Bank has recently forecast Vietnam would post a stable economic growth of 6.9 percent this year, buoyed by strong manufacturing sector supported by foreign direct investment.
Meanwhile, the Asian Development Bank predicted Vietnam's GDP growth would stand at 6.8 percent in 2019 and 6.7 percent in 2020.
