Economists optimistic about Vietnam’s economic outlook
Positive socio-economic signs in the first months of 2018 have made economist optimistic about the Vietnamese economy’s outlook for the whole year as well as until 2020.
Minister of Planning and Investment Nguyen Chi Dung speaks at the event
At a conference in Hanoi on May 15 on the Vietnamese economy’s outlook for 2018 and to 2020, Minister of Planning and Investment Nguyen Chi Dung highlighted the good socio-economic performance in the first months of 2018, especially a GDP growth of 7.38 percent, the highest rise of the first quarter in 10 years. The macro-economy was kept stable, and inflation was under control.
The average consumer price index (CPI) in the first four months of 2018 rose 2.8 percent. The monetary market and the banking system remained stable with the system’s liquidity ensured, he said.
The Minister added that disbursement of foreign direct investment was estimated at 5.1 billion USD, up 6.3 percent. The number of newly-established enterprises was over 41,200 with combined capital of about 412 trillion VND.
Total import-export revenue in the period was estimated to hit 73.76 billion USD, a rise of 19 percent year on year, with a trade surplus of about 3.39 billion USD.
The country also saw its ranking enhanced in many fields, including business environment, competitiveness and innovation.
“These are good signs, especially when the domestic and world economic situations have posed positive impacts on the country’s economy,” stated the minister.
He added that domestic reform policies have begun to show their good effects, while free trade agreements and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are expected to bring positive effects.
“There are many reasons for us to believe in the growth prospects of the Vietnamese economy in the rest of the years and the years to come,” stressed Dung.
President of the Vietnam Association of Foreign Invested Enterprises (VAFIE) Nguyen Mai held that foreign investment (FDI) has played an important role in the Vietnamese economy. Last year, the FDI disbursement reached a record figure of 17.5 billion USD.
He predicted that FDI disbursement this year may hit 19 billion USD.
Meanwhile, Warrick Cleine, President and General Director of KPMG Vietnam asserted that foreign investors are becoming more confident in the Vietnamese economy.
A number of forecasts of international organisations put the country’s average GDP growth in the 2018-2020 at around 6.85 percent and even 7 percent in some years.
However, Minister Dung said the Vietnamese Government has been highly aware of the possible impacts by the economy’s internal problems and outside influence.
The country aims for fast and sustainable economic growth on the basis of making full use of humankind’s science-technology advances, especially from the 4.0 industrial revolution, towards the goal of a modern industrialized country with an advanced market economy.
Minister Dung also highlighted the need for joint efforts of all sectors at all levels as well as all economic players in maintaining the growth trend not only in 2018 but in following years.