Viet Nam is expected to maintain high economic growth of around 7.8 percent in 2006 and 8 percent in 2007, compared to overall Southeast Asia growth of 5.5 percent and 5.7 percent, respectively, reported the Asian Development Bank (ADB).
The bank announced its annual publication - the Asian Development Outlook 2006 (ADO) - in Ha Noi on April 6.
The projected growth is based upon consideration of the AFTA and WTO commitments, acceleration in recent years of the restructuring of state enterprises, financial sector development, improvement of the business environment, and current action to control corruption.
The ADB report further said that the momentum for domestic demand is likely to be maintained through sustained growth in foreign direct investment inflows, private remittances, and tourism receipts. Inflation is likely to moderate to about 5-6 percent over 2006-2007.
The bank estimated that Viet Nam's GDP growth in 2005 was about 8.1 percent, while the overall growth rate in Asia was 7.4 percent, with Viet Nam ranking second  in the region after China. 2005 was the sixth consecutive year that Viet Nam achieved such high economic growth.
The ADB report added that in Viet Nam, economic growth helped reduce the country's poverty rate from 58 percent in 1993 to 19.5 percent in 2004 (measured in terms of the national poverty standard) and the unemployment rate fell from 5.6 percent in 2004 to 5.1 percent in 2005. Various social indicators, such as education levels and infant mortality, have also improved, as reflected in an increase in the country's ranking in the United Nations Development Programme's human development index.
Addressing a press briefing on the ADB report in Ha Noi on April 6, Kanokpan Lao-Araya, Head of the Finance, Trade, Governance and Private Sector Department of the ADB Office in Ha Noi, voiced her positive opinion about Viet Nam's improved economic mechanism, in which the industry and service sectors continue to be leading engines of growth.
Industry output has soared substantially, making up 41 percent of the Gross Domestic Product (GDP) in 2005, up from 22.7 percent in 1990. The service sector hit an annual growth rate of 8.2 percent, accounting for 38.1 percent of the GDP. Dependence on the agricultural sector has gradually dwindled, with its share of the GDP in 2005 at 20.9 percent, compared to 28.7 percent in 1990.
As for the country's business environment, she said, "In 2005, the National Assembly passed a Unified Enterprise Law and a Common Investment Law, designed to boost private investment by reducing administrative barriers to business development. Efforts to improve the business climate have helped generate strong growth in both domestic private investment and FDI."
The ADO acknowledged that the Government is making headway in its bid for World Trade Organisation (WTO) membership. It is expected that AFTA and WTO commitments will support the introduction of new technology, increased productivity, and the development of a more competitive economy for the country.

Source: Vietnam Agency