Viet Nam has achieved the highest first-half growth over the recent five years with GDP growth rate of 6.28%, according to the “Taking Stock: An Update On Viet Nam’s Recent Economic Development” report released by the World Bank (WB) on July 20.

The report, released twice per year, shows positive signs for the nation’s economy. In the context of low inflation rate, the State Bank of Viet Nam (SBV) has loosened the monetary policy to support economic activities and adjust the exchange rates to ensure the competitiveness of the economy.
WB Senior Economist Sebastian Eckardt said the Government has launched active measures, including the issuance of the Decree on financial supervision, performance assessment and disclosure of financial information applicable to state-owned enterprises and state - capitalized enterprises.
According to Mr. Sandeep Mahajan, Lead Economist at the World Bank, banking reform has made progress, especially in merger and acquisition.
Although the VAMC (Viet Nam Asset Management Company) had seen some positive steps, a lack of capital and limited capacity continues to be an obstacle for it in handling bad debts, he added.
WB Country Director in Viet Nam Victoria Kwakwa suggested that the SBV need to flexibly adjust the exchange rates to follow the changes of the market.
The WB predicted that higher and more sustainable economic growth will depend on the nation’s maintenance of macro-economic stability and the enhancement of economic restructuring.