In a report released
on July 19, the WB said after posting strong growth in 2015, Vietnam’s economy
grew at a slower pace in the first half of this year, with gross domestic
product (GDP) growth at 5.5 percent, compared to 6.3 percent a year before.
The growth slowdown was attributable to the recent drought and saltwater
intrusion’s adverse impacts on agriculture, and weaker industrial production.
However, the retail market’s expansion has made up for the shrunken agriculture
sector, said Sebastian Eckardt, a senior economist with the WB Group.
He also spoke of the State Bank of Vietnam’s application of the daily reference
exchange rate – a more flexible exchange rate management mechanism which will
improve the Vietnamese dong’s resilience to global fluctuations.
Achim Fock, the WB’s Acting Country Director for Vietnam, said to maintain a
high growth rate, Vietnam needs to push ahead with restructuring to promote
productivity.
Although growth may slow down this year, the country’s mid-term economic outlook
is still positive, he added.
In another report, on Vietnam’s elderly people unveiled the same day, Philip
O’Keefe, lead economist for the WB’s social protection and labour global
practice, said while Vietnam is among the countries with the fastest aging
populations, its average income is much lower than most of the other aging
population nations.
Population aging will have widespread influences on the economy and society. To
mitigate those impacts, it is critical to have policy actions pertaining to the
labour market, pension system and health care, he said.
The report analysed the rapid population aging in Vietnam and suggested some
policy actions to cope with the problem.
About 6.5 million people in Vietnam are at least 65 years old at present. It is
projected to surge almost threefold to 18.4 million by 2040.
VNA