Fresh impetus for economic growth in 2018

2017 was a successful year for Vietnam boasting many new economic records with GDP rising to 6.81% in 2017 - the highest figure the country has recorded over the past ten years.
fresh impetus for economic growth in 2018

Economic experts predict that it will be difficult for the country to maintain its GDP growth in 2018 as it needs to readjust its focus on quality rather than quantity.

Record numbers

2017 has reflected the government’s greater efforts in accelerating reforms, improving management capability and implementing the tasks associated with socio-economic development. Nguyen Bich Lam, General Statistics Office (GSO) General Director said Vietnam witnessed it fastest growth rate since 2011 and grew faster than the average rates of South East Asian nations (5.2%), Asia (6%), and the world (3.6%).

Notably, Mr Lam attributed the 2.7 times growth or 17.8% of processing and manufacturing industries to the right track of transition of modernization and industrialization. Some high quality service sectors have reported their highest growth rate for 2011-2017 such as finance, banking, insurance and real estate 2017 was also a successful year for Vietnam’s trade expansion into the world. Export turnovers saw a three-fold increase against GDP growth (21.1%) – the highest rate in recent years.

In addition, the number of newly-established enterprises reached a record figure of 130,000 while FDI nearly hit the US$36 billion mark. Vietnam’s economy saw strong growth last year and macro-economic stability, according to the World Bank. Many economists were optimistic about the upward trend of the economy which bore positive signs throughout 2017.

The facts behind the figures

According to Vo Tri Thanh, former Deputy Head of the Central Institute for Economic Management (CIEM) despite the fulfillment of socio-economic targets, especially the GDP growth target, it should not to be complacent about these positive results.

He highlighted the fact that FDI businesses have significantly contributed to the high export growth as export turnovers have accounted for 73% of the country’s total export revenue.

MrThanh called for joint efforts to achieve higher economic growth as last year’s growth economic efficiency and incremental capital output ratio (ICOR) were still low. Vietnam has been transforming itself into a market economy in accordance with international commitments that need clear-cut reform orientations and market trust over the medium and long-term.

The senior expert recognised that the state owned enterprises (SOEs) restructuring process was conducted at a slow paced as shown by the still high costs of businesses despite drastic changes. Moreover, the problem of how to deal with the issue in a transparent and responsible way still fail to meet the aspiration of building a facilitating and action-oriented government.

Sharing the same viewpoint with economist Vo Tri Thanh, the director of the Vietnam Institute for Economic & Policy Research (VERP) Nguyen DucThanh, says the bottleneck hindering Vietnam’s economic growth is the poor state management and ineffective operations of State owned enterprises. Consequently, Duc Thanh has stressed that the crux of the matter is to boost all-level drastic reform to achieve a higher growth in the coming time.

Level of growth

Despite such difficulties, there are bright prospects for Vietnam’s economic growth in 2018 thanks to leverage for growth of 2017, especially from the private and FDI sectors.

CIEM Director Dr. Tran Dinh Thien says one of the highlights of the national economy in 2017 was capital contribution by the private economic sector that replaced slowly disbursed public investment capital.

For example, the Sungroup plans to spend 18 months building Quang Ninh airport and is expected to open new air routes in June this year. In contrast, it would take the State at least 15--20 years to build such an airport, said Mr Thien.

Prof. Dr. Nguyen Mai, chairman of Vietnam Association of Foreign Invested Enterprises (VAFIE) argues that the FDI sector would continue to stand as the driving force of Vietnam’s economic growth in 2018 as a result of the success of APEC Year 2017 the investment expansion plans of Japanese investors, and increased VN - index in the securities market along with the improved business climate, thereby giving positive signs for business and production over the coming years.

Although Vietnam’s economy sees the auspices of further growth in 2018, economists suggest that the growth target of 6.5%-6.7% this year is feasible.

Mr Lam from GSO notes that in 2018 and the following years, Vietnam’s economy still has to face up to a number of challenges. Accordingly, the World Economic Forum identified the top 10 big risks to development including weapons of mass destruction (WMD), extreme weather events, natural disasters, failure of climate change adaptation or mitigation, water crises, cyber-attacks, food crises, biopersity loss and ecosystem collapse, large-scale involuntary migration, and epidemic diseases. Vietnam has to be prepared to confront six out of the top 10 risks, he adds.

Economist Vo Tri Thanh was of the same opinion, saying that economic growth of 6.5%-6.7% is achievable for Vietnam.

The WB, ADB, and Standard Chartered Bank have recently given forecasts with very positive figures for Vietnam’s GDP growth in 2018 at 6.5%, 6.7%, and 6.8%, respectively. The recent message by the Government has shown its determination to achieve a GDP growth rate of 6.7% this year.

Source: VOV

Related News

Vietnam

Vietnam's GDP in 2024 could achieve nearly 7% growth

VCN - According to Nguyen Anh Duong, Head of the General Research Department at the Central Institute for Economic Management (CIEM), Vietnam achieved significant socio-economic results in the first half of the year. Based on these outcomes, CIEM has developed two macroeconomic forecast scenarios for 2024.
The trend of GDP acceleration is increasingly clear

The trend of GDP acceleration is increasingly clear

VCN - In the context of a world economic recovery trend, our country's economic growth in the first six months of 2024 continues to prosper with an increase of 6.42%. This result is higher than the upper target growth rate set in Resolution 01/NQ-CP of the Government, and is considered a positive sign for the growth target for the whole year 2024.
A lot of room for growth in the potential for Vietnam - Rok financial cooperation

A lot of room for growth in the potential for Vietnam - Rok financial cooperation

VCN - During the business trip program to the Republic of Korea (RoK), the delegation of the Ministry of Finance led by Minister Ho Duc Phoc had a working session with the RoK’s Deputy Prime Minister and Minister of Economy and Finance on March 8, at the Government Complex Seoul.
Solutions for safe international trade transactions

Solutions for safe international trade transactions

VCN - The increasingly strong trend of opening up international economic integration has been opening up many trade opportunities for the Vietnamese business community. This is an opportunity to promote the export of Vietnamese goods to potential markets around the world, but the larger the "playing field", the greater the associated risks. Around this issue, Mr. Hoang Minh Chien (photo), Deputy Director of the Department of Trade Promotion, Ministry of Industry and Trade, shared about solutions for businesses to exploit these opportunities.

Latest News

Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Three out of the five Vietnamese businesses, which have formed limited liability companies in Indonesia, have been verified and received certificates of lobster cultivation from the Directorate General of Aquaculture, according to Indonesia’s Ministry of Maritime Affairs and Fisheries.
Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese consumers spent 143.9 trillion (5.68 billion USD) buying 1.53 million items on five e-commerce platforms in the first half of this year, representing a rise of 54.91% and 65.55% over the same period last year, respectively, according market analysis firm Metric.
Four tens of billion USD export markets

Four tens of billion USD export markets

VCN - According to General Department of Vietnam Customs, by the end of June 2024, Vietnam has four markets achieve export turnover of US$ 10 billion.
Successful digital transformation solutions for wood industry enterprises

Successful digital transformation solutions for wood industry enterprises

VCN - Refraining from rushing, implementing steps gradually, and maintaining a clear vision are the recommendations that experts give to wood industry enterprises for successful digital transformation.

More News

Vietnamese lychee sold well at Costco stores in Australia

Vietnamese lychee sold well at Costco stores in Australia

Lychee, one of Vietnam’s major export fruits, has been sold well at Costco stores in Western Australia and South Australia, according to the Vietnam Trade Office in Australia.
Durian exports forecast to top 3 billion USD in 2024

Durian exports forecast to top 3 billion USD in 2024

Durian exports may surpass 3 billion USD this year, according to Dang Phuc Nguyen, General Secretary of the Vietnam Vegetable and Fruit Association (Vinafruit).
FTA - support to promote pangasius export

FTA - support to promote pangasius export

VCN - The implementation of FTAs ​​always creates favorable conditions for businesses to expand and diversify markets, bringing Vietnamese seafood, including pangasius, to participate deeperly into the global production and supply chain.
Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

Vietnam - France trade reached nearly US$2.5 billion in the first half of the year

VCN - France is Vietnam's leading trade partner in Europe with bilateral turnover reaching billions of US$/year.
Technology increases competitiveness in the logistics race

Technology increases competitiveness in the logistics race

VCN - In the context that the logistics industry in Vietnam is forecast to continue to grow strongly, many businesses are actively applying technology and expanding service chains to take advantage of opportunities and keep pace with the general trend.
MoIT proposes key solutions to cope with rising sea freight prices

MoIT proposes key solutions to cope with rising sea freight prices

The Ministry of Industry and Trade (MoIT) has requested local associations and businesses to coordinate implementing key solutions to promote imports and exports as sea freight rates rise.
Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnam's seaport cargo throughput is set to reach 1.2-1.4 billion tonnes by 2030, with container cargo expected to range from 46.3 to 54.34 million TEUs, according to a detailed plan for the development of seaport groups, wharfs, jetties, buoy berths, and water areas in 2021-2030, with a vision to 2050.
Binh Dinh seeks investment opportunities from Germany, France

Binh Dinh seeks investment opportunities from Germany, France

A delegation from the south central province of Binh Dinh led by Permanent Vice Secretary of the provincial Party Committee Le Kim Toan paid a working trip to Germany and France to explore investment opportunities from July 17-22, reported the provincial Department of Planning and Investment.
Warnings as HRC steel imports continue to increase rapidly

Warnings as HRC steel imports continue to increase rapidly

The amount of imported hot-rolled coil steel in the first six months of this year increased sharply to an alarming level, 1.7 times higher than domestic production.
Read More

Your care

Latest Most read
Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Indonesia licenses certificates of lobster cultivation for three Vietnamese companies

Three out of the five Vietnamese businesses, which have formed limited liability companies in Indonesia, have been verified and received certificates of lobster cultivation from the Directorate General of Aquaculture, according to Indonesia’s Ministry of Maritime Affairs and Fisheries.
Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese spend nearly 150 trillion VND on online shopping

Vietnamese consumers spent 143.9 trillion (5.68 billion USD) buying 1.53 million items on five e-commerce platforms in the first half of this year, representing a rise of 54.91% and 65.55% over the same period last year, respectively, according market analysis firm Metric.
Four tens of billion USD export markets

Four tens of billion USD export markets

According to General Department of Vietnam Customs, by the end of June 2024, Vietnam has four markets achieve export turnover of US$ 10 billion.
Successful digital transformation solutions for wood industry enterprises

Successful digital transformation solutions for wood industry enterprises

VCN - Ms. Nguyen Thi Linh Vy, Production Management Director at Imity Company, also states that although they had planned digital transformation two years ago, the company has not yet dared to implement it.
Vietnamese lychee sold well at Costco stores in Australia

Vietnamese lychee sold well at Costco stores in Australia

Lychee, one of Vietnam’s major export fruits, has been sold well at Costco stores in Western Australia and South Australia, according to the Vietnam Trade Office in Australia.
Mobile Version