Vietnam macroeconomy improves (23/7)
23/07/2013 - 14 Lượt xem
Optimistic signals
The
World Bank's Lead Economist for Vietnam Deepak K. Mishra said that the
Vietnamese government had applied monetary and financial policies to
stabilize macroeconomy, and that the Vietnamese macroeconomy was
relatively stable; the macroeconomic environment had changed, with
inflation decreasing to stand at 6.3 percent and foreign reserves had
improved; Vietnam’s economy grew 5.2 percent in 2012 and is expected to
grow about 5.3 percent in 2013 and 5.4 percent in 2014.
Total
export revenue increased by an estimated 16 percent over the same time
last year. Of this, the foreign invested sector made a 66 percent
contribution to the total export revenue, up almost 25 percent from the
same period of 2012. Notably, the country’s export structure became more
diverse, while the percentage of hi-tech exports increased. To be
specific, telephones and related components became the biggest export in
terms of value bringing in US$9.9 billion, surpassing other traditional
exports including crude oil, textile/garment and footwear.
Although
foreign direct investment (FDI)’s contribution to Vietnam’s gross
domestic product (GDP) decreased from 11.8 percent in 2008 to 7.7
percent in the first half of this year, Vietnam is still the first
choice for investors in the future according to the ASEAN (Association
of Southeast Asian Nations) business outlook survey carried out by the
Singapore Business Association and the American Chamber of Commerce
(AmCham). More than half of surveyed businesses said that they have had
plans to expand business in Vietnam. According to a survey by the
Singapore Business Association, Vietnam has become the second most
attractive destination for Singaporean investors, after Myanmar.
Challenges ahead
While
Vietnam’s macroeconomy obtained some gains it has challenges to
overcome, one of which is found in the tardy pace of restructuring, said
Deepak K. Mishra.
State
business restructuring has been going for two years but the process had
remained slow. Easing this problem needed a more adequate legal
framework for state enterprise management. The restructuring would not
be successful without better and transparent inter-sector coordination.
The
establishment of the Vietnam Asset Management Company (VAMC) is the
government’s most concrete step to resolve the problems of bad debts.
Tardy
economic restructuring would decrease investor trust and have a
negative impact on growth. Deepak K. Mishra said that although system
risk controls had improved somewhat the finance and banking sector
remained weak. If the government maintains macroeconomic stability and
the State Bank of Vietnam’s cautious monetary policy, hurt to this
sector could be prevented and decreased, he said. /.
Source: VEN
Source: VEN
