Vietnam’s annual economic growth seen at 7% during 2021-2025

Annual inflation is seen at 3.5-4.5% during the period.

The two trade pacts with Pacific nations and the EU, known as CPTPP and EVFTA could have a wide-ranging impact on the Vietnamese economy in the next five years. They could increase Vietnam’s GDP up by 4.3% and 1.3% respectively by 2030.

Vietnamese exports to the EU are projected to increase by 44.4% by 2030 while exports to CPTPP members are forecast to go up by 14.3% by 2035, report says.

The two trade agreements are also expected to have a positive impact on Vietnam’s labour market and exert pressure on the government to improve institutions and the business environment.

According to experts, Vietnam’s growth drivers during the 2016-2020 period have not changed much, still mainly relying on investment, with the economic structure shifting rapidly to services while the industrial foundation remains weak.