ADB affirms economic growth potential of Vietnam

The Asian Development Bank has revised up its forecast of Vietnam GDP growth for 2019 and 20202 from 6 8 percent to 6 9 percent and 6 7 percent to 6 8 percent respectively in contrary with projections for Asia
adb affirms economic growth potential of vietnam

The knitted fabric factory of the Best Pacific Vietnam Co. Ltd, invested by Hong Kong (China), in the Vietnam-Singapore Industrial Park in Hai Duong province (Photo: VNA)

ADB Vietnam’s chief economist Nguyen Minh Cuong affirmed in an interview granted to Vietnam News Agency that there are many reasons for ADB to believe in the growth potential of Vietnam.

He said the forecast for Vietnam was based on the growth of domestic consumption, plus strong increases in export turnover and foreign investment in the past 11 months. Total foreign trade of Vietnam could reach 500 billion USD this year or even higher.

The bank also noticed the remarkable improvement in Vietnam’s business environment over the past years, along with the trend of foreign investment shifting from China to other markets, and in the context of the US-China trade dispute, Vietnam is really an attractive market for investors.

Besides, Vietnam has made noteworthy improvement in competitiveness, which made it easy to understand why the foreign investment flow into Vietnam is rising strongly.

Another important reason is the macro-economic stability in Vietnam, with low inflation rate thanks to the State Bank’s flexible and appropriate monetary policies which well support growth.

According to the expert, though public investment disbursement may remain slow, authorized agencies have put forth some drastic measures and the pace is expected to accelerate.

Asked to comment on concerns that the reform process in Vietnam is slowing down, the ADB expert said the reform is still underway effectively, adding that he hopes for stronger measures in some aspects, for example the rearrangement of State-owned enterprises, in which the current progress has not matched expectations and targets set by the State.

In the finance-banking sector, despite some positive changes such as the settlement of bad debt or credit risk control in accordance with Basel II-stand, the reform pace is under expectation, calling for stronger measures, especially in handling bad debt.

Cuong affirmed that there are not many reasons for us to worry about Vietnam’s reform progress, explaining that besides internal factors, Vietnam’s reform is driven by many external factors.

In the 2019-2020 period, the external factors are clear, he said, citing the country’s commitments to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Vietnam-European Union Free Trade Agreement.

Therefore, the expert was of the opinion that the driver for reform will continue to strengthen in 2020.

Talking about solutions to promote the development of the private sector, the ADB expert said the Government plays a very important role.

Accounting for more than 96 percent of the total number of enterprises nationwide, the private sector in Vietnam is very perse, with household businesses (which make up a big portion and contributing about 30 percent of the national GDP), small- and medium-sized enterprises (SMEs) and big private groups.

Cuong noted that the past decade has seen a strong development of large-scale private groups. The question is how to enable those large-scale private groups to create big breakthroughs for the economy while ensuring the extensive and fair development of SMEs and household businesses, he said, stressing that that is the task for institutions and policies.

According to the expert, large private groups should realize that when Vietnam joins bilateral and multilateral FTAs which require the country to create a transparent and fair playground for domestic and foreign enterprises, there will be no preferential treatment or specific policies for domestic private companies. Therefore, the private sector should realize advantages and difficulties and learn how to optimize opportunities to join the global value chains.

For SMEs and household businesses, Cuong said while many used to say this sector faces difficulties and obstacles in accessing financial credit, reality and comparison with other countries in the region and the world show that regulations on collateral, feasible business plans and many other requirements of banks are similar be in any country.

He expressed his personal view that financial credit access is not the basic issue. Instead, it is the firm’s capacity to absorb capital, which depend on the firm’s administration capacity, workers’ skills, which requires attention of firms, Cuong said.

Source: VNA

Related News

Six factors positively impact economic growth in 2024

Six factors positively impact economic growth in 2024

VCN- Minister of Planning and Investment (MPI) Tran Quoc Phuong said there are 6 factors that will positively impact economic growth in the remaining months of 2024.
Prioritize stimulating domestic consumption to promote economic growth in 2024

Prioritize stimulating domestic consumption to promote economic growth in 2024

VCN - According to General Director of the General Statistics Office Nguyen Thi Huong, in the context of many difficulties in the world economy, the export growth rate is slowing down, many businesses are facing a shortage of orders..., priority should be given to stimulating demand. Domestic consumption is considered an important solution to promote economic growth in 2024.
Rubber exports grows sharply in June

Rubber exports grows sharply in June

VCN - According to Import – Export Tax Department (Ministry of Industry and Trade), Vietnam's rubber exports in June 2024 reached about 150 thousand tons, worth 238 million USD, up 77.6% in volume and 76.6% in value. Price compared to May 2024.
Developing export markets along with trade promotion

Developing export markets along with trade promotion

VCN - Import and export of goods in the first 6 months of 2024 continue to record positive results, total turnover is estimated at USD 369.6 billion, up 16% over the same period last year.

Latest News

PM calls for all-people, comprehensive digital transformation

PM calls for all-people, comprehensive digital transformation

Prime Minister Pham Minh Chinh on July 19 called for the all-people and comprehensive digital transformation, with the engagement of the whole political system, people and enterprises in the development of digital infrastructure, completion of the digital institutions and human resources training, so that Vietnam can catch up with and be on par with other nations amidst global headwinds.
Statement of the Ministry of Foreign Affairs on Vietnam submission on the limits of the extended continental shelf beyond 200 nautical miles in respec

Statement of the Ministry of Foreign Affairs on Vietnam submission on the limits of the extended continental shelf beyond 200 nautical miles in respec

Vietnam presented to the United Nations Commission on the Limits of the Continental Shelf (CLCS) its Submission on the Limits of the Extended Continental Shelf in respect of the Central Area of the East Sea (South China Sea) (VNM-C) at the UN headquarters in New York on July 17 morning (local time).
Vietnam’s e-commerce market grows fastest in SEA

Vietnam’s e-commerce market grows fastest in SEA

Vietnam, along with Thailand, are the two fastest growing e-commerce markets in Southeast Asia, according to the recently released report '2024 E-commerce in Southeast Asia' by Momentum Works.
Deputy PM urges implementation of 1 million hectare of high-quality rice project

Deputy PM urges implementation of 1 million hectare of high-quality rice project

Deputy Prime Minister Tran Luu Quang on July 17 requested the acceleration of the implementation of a project to develop 1 million hectares of specialised rice cultivation with high quality and low emissions associated with green growth in the Mekong Delta region from now to 2030.

More News

Việt Nam targets full mobile broadband coverage on highways, industrial zones by 2025

Việt Nam targets full mobile broadband coverage on highways, industrial zones by 2025

By 2025, Việt Nam aims to achieve 100 per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of the country’s mobile telecommunications network, approved by the Ministry of Information and Communications (MIC).
Vietnamese enterprises undeterred by economic headwinds: UOB

Vietnamese enterprises undeterred by economic headwinds: UOB

Vietnamese companies have been upbeat about the current business environment, according to the Business Outlook Study 2024 (SMEs & Large Enterprises) conducted by Singapore-based United Overseas Bank (UOB).
AMRO revises Vietnam’s 2024 growth forecast upward to 6.3%, highest in ASEAN

AMRO revises Vietnam’s 2024 growth forecast upward to 6.3%, highest in ASEAN

The ASEAN+3 Macroeconomic Research Office (AMRO) revised Vietnam’s economic growth forecast upward to 6.3% for 2024 in its latest update released on July 16.
Trade remedies create a fair business environment

Trade remedies create a fair business environment

VCN - The investigation and application of trade defense measures have contributed to protecting and creating a fair competitive environment for domestic manufacturing industries.
PM asks for solutions towards 95% of public investment disbursement rate

PM asks for solutions towards 95% of public investment disbursement rate

Prime Minister Pham Minh Chinh has asked for breakthrough solutions to fulfil the target of 95% in the disbursement rate of public investment capital in 2024.
Industrial production has not yet been able to fully recover as before the Covid-19 pandemic

Industrial production has not yet been able to fully recover as before the Covid-19 pandemic

VCN - Industrial production in the second quarter of 2024 grew more positively than in the first quarter of 2024, the value added growth rate was estimated at 8.55% over the same period last year. In the first six months of the year, the added value of the industrial sector increased by 7.54% over the same period last year, of which the processing and manufacturing industry increased by 8.67%.
PM urges measures to remove obstacles to e-commerce

PM urges measures to remove obstacles to e-commerce

Prime Minister Pham Minh Chinh has stressed the need to implement specific tasks in order to untangle knots in e-commerce development, according to the Government Office.
European firms hope for Vietnam’s continuous policy adjustments: EuroCham survey

European firms hope for Vietnam’s continuous policy adjustments: EuroCham survey

The European Chamber of Commerce in Vietnam (EuroCham) on July 15 released its Business Confidence Index (BCI) report for the second quarter of 2024, which reveals a marginal decline from 52.8 in Q1 to 51.3 in Q2, underscoring the necessity for ongoing policy adjustments to maintain momentum.
Vietnam attends 14th annual East Sea conference in US

Vietnam attends 14th annual East Sea conference in US

A Vietnamese delegation led by Vice President of Diplomatic Academy of Vietnam Nguyen Hung Son attended the 14th annual conference on East Sea (also known as South China Sea) held by the Washington DC-based Centre for Strategic and International Studies (CSIS) on July 11.
Read More

Your care

Latest Most read
PM calls for all-people, comprehensive digital transformation

PM calls for all-people, comprehensive digital transformation

Prime Minister Pham Minh Chinh on July 19 called for the all-people and comprehensive digital transformation, with the engagement of the whole political system, people and enterprises in the development of digital infrastructure, completion of the digital institutions and human resources training, so that Vietnam can catch up with and be on par with other nations amidst global headwinds.
Statement of the Ministry of Foreign Affairs on Vietnam submission on the limits of the extended continental shelf beyond 200 nautical miles in respec

Statement of the Ministry of Foreign Affairs on Vietnam submission on the limits of the extended continental shelf beyond 200 nautical miles in respec

Vietnam presented to the United Nations Commission on the Limits of the Continental Shelf (CLCS) its Submission on the Limits of the Extended Continental Shelf in respect of the Central Area of the East Sea (South China Sea) (VNM-C) at the UN headquarters in New York on July 17 morning (local time).
Vietnam’s e-commerce market grows fastest in SEA

Vietnam’s e-commerce market grows fastest in SEA

Vietnam, along with Thailand, are the two fastest growing e-commerce markets in Southeast Asia, according to the recently released report '2024 E-commerce in Southeast Asia' by Momentum Works.
Deputy PM urges implementation of 1 million hectare of high-quality rice project

Deputy PM urges implementation of 1 million hectare of high-quality rice project

Deputy Prime Minister Tran Luu Quang on July 17 requested the acceleration of the implementation of a project to develop 1 million hectares of specialised rice cultivation with high quality and low emissions associated with green growth in the Mekong Delta region from now to 2030.
Việt Nam targets full mobile broadband coverage on highways, industrial zones by 2025

Việt Nam targets full mobile broadband coverage on highways, industrial zones by 2025

By 2025, Việt Nam aims to achieve 100 per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of the country’s mobile telecommunications network, approved by the Ministry of Information and Communications (MIC).
Mobile Version