Garment production for exports. Photo: VNA
(VOVworld) - The World Bank forecast that the Vietnamese economy will grow at a rate 6.2% in 2015 and 6.3% in 2016, according to the East Asia and Pacific Economic Update released on Monday. Vietnam’s poverty rate is expected to reduce with extreme poverty, which is currently set at living on 1.90 USD per day or less, tapering off from 2.8% in 2012 to 1% in 2017. Meanwhile, the population living under 3.10 USD per day is predicted to dwindle to 6.7% in 2017 from 12.3% in 2012. Economic recovery and stable macro-economic conditions will further reduce poverty. However, the World Bank said slower agricultural growth will affect rural resident incomes, thus increasing the urban-rural income gap. The report also pointed to challenges facing Vietnam, such as slow growth, unstable elements spurred by the country’s dependence on trade and decreases in the prices of rice and other farm produce. It recommended that Vietnam outline a plan to consolidate mid-term financial conditions while carrying out reforms to fortify finances for State-owned enterprises and banks.

Meanwhile, the World Bank expected the East Asia-Pacific region’s economy to expand by 6.5 percent in 2015, lower than the 6.8 percent growth of last year. The World Bank said East Asia will create global momentum as it accounts for almost two-fifths of the world’s economic growth. It said that the region needs to prioritise prudent macro-economic management to tackle financial issues as well as deepen economic restructuring with a focus on private investment.