While the world’s largest emerging economies such as Russia, Brazil and China falter, Vietnam’s steady economic growth at nearly 7 percent this year will make it among the fastest-growing markets in the world, Bloomberg said in a recent article.

According to Bloomberg surveys, Vietnam’s economy is expected to expand 6.7 percent this year, the same pace as in 2015.

Photo for illustration: dantri.com.vn

Rising domestic demand and foreign direct investment are helping the nation cope with global threats like stock sales and currency depreciation.

The State Bank of Vietnam’s current efforts to make the exchange rate more flexible have also contributed to strengthening macro-economic stability and easing pressure on reserves, according to the article.

It also quoted economist Eugenia Victorino from Australia & New Zealand Banking Group Ltd. as saying that Vietnam is positioned to have another stellar year in 2016.

However, the long-term outlook will depend on political changes in the next 12 months, the economist said.

He also forecasted that Vietnam may become one of the fastest growing economies of the region and the world in 2016 and 2017, adding that Vietnam’s rising trade deficit could derail its longterm growth, due to much faster import growth from consumption-related items such as automobiles.

Source: VNA