Real GDP Growth To Sustain in 2017

Economic Research	30 March 2017
Vietnam
Economic Update
Real GDP Growth To Sustain in 2017 Vietnam’s real GDP slowed to a growth of 5.1% YoY in 1Q17, from a growth of 6.2% in 2016 and compared to +5.5% in 1Q16. As a whole, we expect Vietnam’s real GDP to grow by 5.9% in 2017, albeit at a more moderate pace from +6.2% in 2016, and compared to +6.7% in 2015. This is premised on:     i.   Resilient exports due to participation in free trade agreements (FTAs);    ii.   Strong inflows of foreign direct investments (FDI);   iii.   Robust private investment; and   iv.   Economic restructuring and institutional reform. The slowdown in 1Q was mainly on account of a sharper decline in mining activities, while manufacturing, construction and services sectors slowed during the month. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist: Aris Nazman Maslan | +603 9280 2184