Growth target leans on FDI in last quarter

While the country’s growth target of 6.7% for 2016 may be out of reach, its economic outlook remains positive thanks to strong foreign direct investment.
tin nhap 20161010164121 Foreign investment in textile & garment sector falls
tin nhap 20161010164121 Exports hit US$112.19 billion in eight months
tin nhap 20161010164121 Can Tho attracts US$175 million in FDI
tin nhap 20161010164121
FDI contributes about 18% of Vietnam’s GDP, nearly a quarter of total investment, two thirds of total exports and millions of direct and indirect jobs.

Prime Minister Nguyen Xuan Phuc last week requested greater efforts from ministries, localities, and enterprises to reach a modest economic growth of 6.3-6.5% this year, which is smaller than last year’s 6.68%.

The economy rose quarter-on-quarter since early this year, from 5.48% in the first quarter to 5.78% in the second quarter, and to 6.4% in the third quarter.

The Ministry of Planning and Investment (MPI) last week submitted a scenario for 2016 growth to the government for discussion, based on different growth expectations in the fourth quarter.

“We can only reach 6.3-6.5% if we put in greater efforts to support enterprises and people,” said the prime minister.

For example, he asked the Electricity of Vietnam to ensure sufficient electricity for the entire country from now until 2020. Leaders of ministries and localities are also required to continue devising specific actions in favour of enterprises and people.

MPI Minister Nguyen Chi Dung told the government that in the remaining three months there is still some room to boost the economy-including foreign direct investment (FDI), disbursement of state budget investment capital, and government bonds, as well as improvement of the local demand and consumption.

The World Bank last week forecast that Vietnam’s economy is expected to grow only 6% next year, and also 6.3% in 2018.

In its update on Vietnam’s economy released in late September, the Asian Development Bank (ADB) also predicted that the economy may grow only 6% this year, and rise to 6.3% next year.

However, both banks are optimistic about the country’s outlook thanks to strong FDI.

“Vietnam’s medium-term outlook remains positive,” said Sebastian Eckardt, lead economist for the World Bank in Vietnam. “FDI has accelerated in recent months, reflecting positive investor sentiment about Vietnam’s deeper economic integration.”

FDI commitments in the first nine months of 2016 rose to US$16.43 billion and the disbursed sum hit US$11.02 billion, up 12.4% year-on-year.

It is expected that the figures for the whole year will be about US$24 billion and US$15 billion, respectively, which are higher than last year’s respective figures of US$22.76 and US$14.5 billion.

According to both the ADB and the World Bank, buoyant FDI inflows are expected to drive higher growth in manufacturing and construction until the year’s end.

Much of this investment is directed to manufacturing to generate a steep rise in production, and exports of mobile phones, electronics, and other products.

tin nhap 20161010164121 Foreign investors spend US$3bn on capital contribution, stock in Vietnam

More foreign investors have been investing via capital contributions and stock purchases in Vietnam over the last ...

FDI contributes about 18% of Vietnam’s GDP, nearly a quarter of total investment, two thirds of total exports and millions of direct and indirect jobs, according to the World Bank.

Source: VIR

Related News

Vietnam and China promote Customs cooperation

Vietnam and China promote Customs cooperation

VCN - The representative of Vietnam Customs and the Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to Vietnam exchanged the Action Plan between the General Department of Vietnam Customs (GDVC), the Ministry of Finance of the Socialist Republic of Vietnam and the General Administration of Customs of the People's Republic of China (GACC) on the Mutual Recognition Agreement on Authorized Economic Operator of Vietnam Customs and the Enterprise Credit Management Program of China Customs, on October 13, 2024, at the Government headquarters.
Vietnam

Vietnam's economy remains growth momentum

VCN- According to Mr. Nguyen Ba Hung, Chief Economist of the Asian Development Bank (ADB), public investment will play a key role in economic recovery and growth in 2024. Fiscal measures to support growth and public investment are key policy solutions to stimulate growth year- end months.
Managing price effectively, reducing pressure on inflation

Managing price effectively, reducing pressure on inflation

VCN - Timely and effective price management helps control the consumer price index (CPI) and inflation in accordance with the set target.
State budget revenue reached 85.1% of estimate

State budget revenue reached 85.1% of estimate

VCN - The Ministry of Finance said that in the first 9 months of 2024, the total state budget revenue is estimated at 1,448.2 trillion VND, equal to 85.1% of the estimate, of which many revenue items have achieved good collection progress and growth compared to the same period in 2023. However, in recent months, budget revenue has begun to face difficulties, etc.

Latest News

Linkage - the "key" to sustainable development of agricultural value chains

Linkage - the "key" to sustainable development of agricultural value chains

VCN - Promoting sustainable and effective development of agricultural value chains is a core factor in restructuring Vietnam's agricultural sector and the key to optimize the value of Vietnam's agricultural exports.
Supporting industry enterprises: Learning standards, understanding opportunities

Supporting industry enterprises: Learning standards, understanding opportunities

VCN - Currently, many potential industries have "opened" opportunities for Vietnamese enterprises to enter, such as the semiconductor industry, supporting industries for the aviation sector. However, the higher the added value of the sector, the more it requires enterprises to meet international standards.
Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

An exhibition showcasing Vietnam’s distinctive farm produce exported to China opened in Hanoi on October 13, featuring the participation of 16 local enterprises and introducing over 50 categories of high-quality products from across the three regions of the country.
100 most valuable Vietnamese brands on the limelight

100 most valuable Vietnamese brands on the limelight

This year’s Brand Finance Vietnam 100 Report was also released to provide a comprehensive picture of the valuations.

More News

Need to quickly act to catch up with the "green" trend

Need to quickly act to catch up with the "green" trend

VCN - With the movement from the global level to Vietnam's main markets, as well as the strong commitment of the Vietnamese Government, the trend of "compulsory green/sustainable transformation" has become clear to Vietnamese businesses instead of voluntary as before. However, the level of readiness of businesses is not high.
Businesses cooperate to develop advanced technology

Businesses cooperate to develop advanced technology

VCN- In order to foster development of the high-tech sector, one of factors is close cooperation between businesses to improve competitiveness and promote innovation.
Export target for 2024 set at US$400 billion

Export target for 2024 set at US$400 billion

VCN - Since the beginning of the year, Vietnam's export activities have continued to recover. It is forecasted that the total export turnover for the entire year may reach a historic milestone of US$400 billion.
Thai Binh intensifies cooperation with Russian localities

Thai Binh intensifies cooperation with Russian localities

A delegation from the northern province of Thai Binh, led by Chairman of the provincial People’s Council Nguyen Tien Thanh, on October 10 met with representatives of the Moscow Chamber of Commerce and Industry, along with several Russian businesses.
Ho Chi Minh City partners with nine provinces to boost import and export activities

Ho Chi Minh City partners with nine provinces to boost import and export activities

VCN - Ho Chi Minh City (HCMC) and nine provinces in the northern and north-central regions are cooperating in socio-economic development, leveraging each region's advantages and potential to boost import and export activities.
Vietnam

Vietnam's second rice brand enters picky Japanese market

Japonica - AAN has become the second Vietnamese rice brand to have entered Japan, with a ceremony held on October 9 to debut the produce.
Enterprises need to be ready to respond to trade defense

Enterprises need to be ready to respond to trade defense

VCN - According to the Department of Trade Defense, through the process of protecting the rights of Vietnamese manufacturing and exporting enterprises in each trade defense case, the outcome of the appeal depends largely on the quality of coordination between the parties involved.
Foreign investors interested in green development, semiconductor industry in Vietnam

Foreign investors interested in green development, semiconductor industry in Vietnam

Green, clean development and semiconductor chip production are among the sectors in Vietnam that foreign investors are interested in, according to VinaCapital CEO and Founding Partner Don Lam.
Vietnam’s stainless steel exports under dual investigation

Vietnam’s stainless steel exports under dual investigation

The US Department of Commerce (DOC) has initiated an anti-dumping and countervailing duty investigation into corrosion-resistant steel (CORE) imported from Vietnam, alongside nine other countries and territories.
Read More

Your care

Latest Most read
Linkage - the "key" to sustainable development of agricultural value chains

Linkage - the "key" to sustainable development of agricultural value chains

Promoting sustainable and effective development of agricultural value chains is a core factor in restructuring Vietnam's agricultural sector and the key to optimize the value of Vietnam's agricultural exports.
Supporting industry enterprises: Learning standards, understanding opportunities

Supporting industry enterprises: Learning standards, understanding opportunities

VCN - Currently, many potential industries have "opened" opportunities for Vietnamese enterprises to enter, such as the semiconductor industry, supporting industries for the aviation sector. However, the higher the added value of the sector, the more it r
Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

Vietnam’s distinctive agricultural exports to China exhibited in Hanoi

An exhibition showcasing Vietnam’s distinctive farm produce exported to China opened in Hanoi on October 13, featuring the participation of 16 local enterprises and introducing over 50 categories of high-quality products from across the three regions of the country.
100 most valuable Vietnamese brands on the limelight

100 most valuable Vietnamese brands on the limelight

This year’s Brand Finance Vietnam 100 Report was also released to provide a comprehensive picture of the valuations.
Need to quickly act to catch up with the "green" trend

Need to quickly act to catch up with the "green" trend

VCN - With the movement from the global level to Vietnam's main markets, as well as the strong commitment of the Vietnamese Government, the trend of "compulsory green/sustainable transformation" has become clear to Vietnamese businesses instead of volunta
Mobile Version