Bloomberg: VN – one of fastest growth markets

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While the world’s largest emerging economies including Russia, Brazil and China falter, Viet Nam’s steady economic growth at near 7% this year will make it among the fastest-growing markets in the world. Rising domestic demand and booming foreign direct investment are helping the Southeast Asian nation counter global threats that’s sparked a wave of stock selling and currency depreciation this year.

That comes as the country begins a leadership transition this week that will set the tone for economic reform and growth. The Communist Party’s draft socioeconomic plan for 2016 to 2020 shows the nation will target as much as 7% average annual expansion.

"Viet Nam is positioned to have another stellar year in 2016," economists at Australia & New Zealand Banking Group Ltd. led by Eugenia Victorino said in a report this month. "Nonetheless, the long-term outlook will depend on the outcome of the political changes expected over the next 12 months."

“In 2016 and 2017, we definitely believe that Viet Nam is positioned to be one of the fastest growth stories,” said Victorino. “What could derail Viet Nam’s fast growth story is if trade deficit widens due to much faster import growth from consumption-related items such as automobiles.”

The central bank’s recent efforts to make the exchange rate more flexible will also strengthen macro-economic stability and help ease pressure on reserves, she said.

(According to Bloomberg)