Economy projected to improve in 2017 driven by private sector

The regulating body said on November 10 that institutional reforms would improve the business environment towards being more conducive to the private sector.

Vietnam's growth would also be boosted by the likely recovery of global energy and agricultural commodity prices, the NFSC added.

Nevertheless, Vietnam still face numerous challenges of an uncertain global economy and natural disasters at home while it has only minimal policy room and limited financial resources, the regulator warned.

Furthermore, sluggish agricultural growth, a heavy reliance on foreign-invested enterprises and a slow restructuring process remain issues that need to be addressed.

In 2016 Vietnam's economy is expected to grow less than the expected figure of 6.7% due to slower global growth, falling oil and agricultural commodity prices and the impacts of drought, saltwater intrusion and other natural disasters.

But thanks to the stable performance of manufacturing and services, overall growth recovered in the third quarter after difficulties in the mining and agricultural sectors in the first half of the year.