The Ministry of Planning and Investment (MPI) pointed to the country’s political stability, booming foreign investment and increased global economic integration as catalysts for the forecasted growth.
MPI minister Vo Hong Phuc said industrial production, tourism and import and export growth would fuel Vietnam’s economic development next year.

“The global economic performance and the enhancement of international cooperations are also favourable conditions for our economic development,” Phuc said.
Vietnam’s average per capita income has been targeted at $960 next year and about $1,100 in 2009. This year’s per capita income would reach $835.
Prime Minister Nguyen Tan Dung said Vietnam would attempt to fulfill its 2006-2010 socio-economic development plan by the end of 2009.

This year, the country forecasts to actualise 20 out of the 23 social and economic development objectives despite being sidetracked by rising inflation, natural disasters and many severe difficulties.
The actualised objectives will include export turnover, industrial and agricultural growth, poverty reduction and the education development, all of them have contributed to an economic growth rate estimated to reach 8.5 per cent this year.

Inflation control, import expansion and birth rate are three remaining criteria that failed to meet the targets adopted by the National Assembly. According to a MPI report, the consumer price index will likely increase by more than 9 per cent this year.
Meanwhile, import volume has increase by 27 per cent from the targeted 15.5 per cent set by the National Assembly.

Committed foreign direct investment capital has fulfilled the year’s target after reaching $15 billion by the end November, and is expected to hit a record of $16 billion by the year’s end.

The government has set a target of attracting $14.5 billion in foreign direct investment in 2008.

Phuc said the government would try to curb inflation to below economic growth next year and boost administrative reforms in order to create a more favourable business environment.

Prime Minister Dung said Vietnam would have to encounter difficulties associated to the high fuel prices and the domestic underdeveloped infrastructure system.

Source: Vietnam Investment Review.