Viet Nam’s economic growth prospect is expected to be at 5.6% and 5.8% in 2014 and 2015, respectively, according to Asian Development Bank (ADB).

It is a 0.1% increase over the previous forecast, according to the most updated report of ADB on economic growth prospects for Asia in 2014-2015.

According to the ADB, economic conditions and consumer confidence in Viet Nam increasingly improved with personal spending in the third quarter of this year rose 5.1%.

Workers are pictured on the production line at a footwear company in Ho Chi Minh City

Meanwhile, during the period, Viet Nam's GDP growth was at 5.6 % over the same period last year.

ADB said that the economic activities in Viet Nam have yet been affected as much as previously forecast after the disturbance caused by the Bien Dong (East Sea) incident in May this year.

Moreover, the move of the State Bank of Viet Nam (SBV) to lower interest rates recently has also helped Viet Nam ease credit conditions and improved the investment climate in the country.

According to the ADB report, despite the decrease in domestic investment due to weakening credit growth, foreign direct investment to Viet Nam increased 14% over the same period last year in the first 3 quarters of 2014, pushing the total investment (domestic and foreign) to increase 4.8 %.

In addition, exports of Vietnam also grew faster than imports.

ADB also forecast inflation rate of Viet Nam in 2014 will be at 4.2 %, 0.3 % lower than the previous forecast of 4.5 %, before rising to 5.5 % in subsequent years.