In its annual economic publication, Asian Development Outlook 2019, the ADB said Vietnam’s economy will continue to hold up well in the near future, supported by export-oriented manufacturing, foreign direct investment, and sustained domestic demand.

Nguyen Minh Cuong, ADB’s chief economist in Vietnam, said: “Last year’s strong growth continued in the 1^st quarter of this year. In Southeast Asia, Vietnam’s growth is predicted to slightly decrease to 6.8% in 2019 and 6.7% in 2020, which is still a high rate for the region. The report estimates Vietnam’s average inflation at 3.5 percent this year and 3.8 percent next year due to the adjustment of some state-controlled products.”

The report underlined the importance of strengthening integration in global value chains for private firms. Improving small-and medium-sized enterprises’ access to finance and enhancing their capability are among the important measures enabling SMEs to better adopt new technologies and have adding more to the global value chains.

ABD said that Asia’s economic growth may see a slowdown and will be unable to rebound in 2020. It also warned of risks resulting from the US-China trade war and Britain’s exit from the EU. The report forecast 45 Asia-Pacific countries’ growth to average 5.7% this year and 5.6% next year, the lowest rate since 2001.