WASHINGTON, July 16 (Reuters) - The International MonetaryFund on Tuesday said Vietnam's economic growth was expected toslow to 6.5% in full-year 2019 from a 10-year high of 7.1% in2018, reflecting weak external conditions.
Vietnam's gross domestic product was expected to expand by6.5% again in 2020 and over the medium term, the IMF said in areport on the country's economic developments. The fund alsosaid inflation averaged 3.5% in 2018 and was expected to quickento 3.6% in 2019 and 3.8% in 2020.
The IMF said trade tensions and volatility affected Vietnamin 2018, but the economy had remained resilient, fueled byhealthy growth in middle class incomes and consumption, a strongharvest and a surging manufacturing sector.
"The strong economic momentum is expected to continue in2019, aided by competitive labor costs and other strongfundamentals, including a diversified trade structure, andrecently signed free trade agreements which are spurringreforms," the IMF said in a statement.
"However, a soft landing of growth is expected, to 6.5percent in 2019 and over the medium term, reflecting weakexternal conditions."
The IMF's executive directors welcomed Vietnam's efforts tomodernize its economic institutions and improve governance, andurged it to focus on strengthening anti-corruption legislationand improving oversight of state-owned enterprises.
It said the strong economy provided opportunities for moreambitious reforms to level the playing field for the domesticprivate sector and boost investment by reducing administrativeand licensing procedures and trade barriers.(Reporting by Andrea Shalal, editing by G Crosse and DanGrebler)