Auditing firm Ernst Young predicts in its forecast about
rapid-growth markets that economic activity in Vietnam remains subdued
but is set to pick up this year and in 2014.

This year, the
country’s Gross Domestic Product (GDP) is expected to be 5.5 percent and
the consumption price index (CPI) 7.8 percent.

In 2015, the country’s GDP is estimated to climb to 7.1 percent and the CPI to fall to a growth of 4.8 percent.

“The near 7 percent growth trend can be regained by 2014, as export
markets recover, if banks become more stable and if rule changes are
enacted for planned foreign direct investment,” Ernst Young said in
its report.

“Import substitution will continue to
contain the trade deficit. Despite consumption picking up as inflation
subsides. But competition from other low-cost locations is a downside
growth risk,” it added.

In its forecast, Ernst
Young said that China continued to move up the value chain, creating
many development chances for other Asian countries, including Vietnam.

Vietnam is one of 25 rapid growth markets cited in the
report that have shown improvement thanks to an increase in trade and
demand for commodities.

Ernst Young said that these markets had started to regain momentum.-VNA