Vietnamese economy projected to grow 6.83% in 2018: think tank

10:51 AM 10/05/2018 Print

Vietnam needs to improve labour productivity to maintain its growth momentum.

The think tank also projected that inflation will increase to 4.21% in 2018, slightly higher than the threshold of 4%.

The high growth is attributed to the strong momentum from last year and the Government’s efforts to enhance productivity, the VEPR said in a report released on May 8.

Meanwhile, rising inflation would come as a result of price hikes in petrol and public services, requiring the authorities to closely monitor prices in the second half of the year.

However, in a less favourable scenario, Vietnam’s growth rate could only be 6.49%, while inflation would be relatively stable at 3.86%.

VEPR Director Nguyen Duc Thanh stated that if there are no comprehensive measures to boost productivity in the near future, Vietnam is unlikely to maintain its current growth momentum.

In the medium to long term, Vietnam needs to enhance its incentives for knowledge and skill accumulation and improve technology in order to boost productivity growth, Thanh said.

The report also suggested that Vietnam invest more in research and technological improvement, even through purchasing technology from abroad if necessary.