An economic forecast report issued by Standard Chartered Bank (SCB) showed Vietnam's economic growth is expected to fall by 3.3 percent this year due to impacts of external challenges. SCB said the manufacturing sector's contribution to Vietnam's GDP growth is expected to decrease 1.6 percentage points from 2019.
The service sector accounts for nearly 40 percent of the GDP. With an estimated growth rate of 4 percent compared with 7.3 percent last year, the sector is also forecasted to decelerate. The number of visitors to Vietnam is estimated to fall by 60 percent this year, SCB said.
Earlier, the World Bank predicted that Vietnam's economy will grow 4.9 percent in 2020. The Asian Development Bank recently forecasted that the country's GDP growth will slow to 4.8 percent this year.
Vietnam is estimated to record a GDP growth of 3.82 percent in Q1 2020, the lowest in the 2011-2020 period. Up from the annualized target of 6.6-6.8 percent, Vietnam saw a GDP growth of 7.02 percent last year. A target of attaining a GDP growth of around 6.8 percent set by the country this year.
