Asia Regional Integration Center

Growth rose from 6.2% in 2016 to 6.8% in 2017, reaching its highest rate since before the global financial crisis of 2008–2009. A sharp rise in exports, solid increase in investment, and robust private consumption underpinned growth last year. Recovery in global trade, particularly in electronics, boosted merchandise exports by a whopping 21.2%, measured in dollar value. High growth in domestic investment with contributions from high FDI and rapid credit growth boosted aggregate demand. As the consumer confidence index rose to a high 117, private consumption increased by 7.4%, more than offsetting slight moderation in public consumption caused by continued fiscal consolidation. Reflecting buoyant private consumption, retail sales grew by 10.9% in 2017 to a record $129.6 billion, equal to 58.6% of GDP.

While Viet Nam remains to be one of the fastest growing economies in Southeast Asia, growth projection for 2018 is slightly revised downward from 6.9% to 6.8% as exports moderated and domestic demand weakened.