Vietnam is forecast to witness a Gross Domestic Product (GDP) growth of seven percent in 2016 on support of strong foreign investment (FDI) source, said an international consultancy's report on Friday.

In an Ernst and Young report on Rapid Growth Markets in February, 2014, Vietnam's inflation is projected to go down to 5.5 percent in 2016.

According to the report, a strong rebound in FDI commitments will calm concerns about the stability of the Vietnamese dong that have resulted from low reserves.

With stable FDI inflow, Vietnam's inflation will continue to be under control, contributing to strengthening domestic demand and easing social tensions, said the report.

However, the report foresees that the country's investment recovery will be slowed in 2014 as the interest rates remain high on banks' caution and fear of building up bad debts.

Vietnam ranks the fourth in 25 rapid growth markets due to risks of monetary policy, public debt, inflation, current account deficit as well as currency fluctuations, said the report.