VN sees early signs of economic recovery (04/12)
05/12/2014 - 19 Lượt xem
This positive outlook is largely due to the country’s ongoing macroeconomic stability and continued strong performance of the foreign-invested manufacturing export sector. Positive macroeconomic conditions contributed to Viet Nam’s improved sovereign risk ratings, enabling $1 billion of government bonds to be issued on international capital markets on favorable terms.
The report finds that underlying the broad pattern of economic recovery, the performances of foreign-invested and domestic firms remain dichotomous. The foreign-invested sector continues to be a significant source of growth, while the domestic private sector remains subdued, as reflected in the rising number of domestically-owned businesses that have closed or suspended operations.
The report has a special section on Financial Sector Assessment (FSA), which summarizes the major findings of the recent Financial Sector Assessment Program. The report highlights a complex array of institutional and regulatory factors that are responsible for the weak performance of the financial sector. The government has announced a comprehensive reform program designed to address these problems faced. The FSA provides a broad set of policy recommendations that can be used to operationalize the government’s program.Over the medium term, Viet Nam’s macroeconomic outlook is good, with continued modest GDP growth and a further consolidation of macroeconomic stability. The outlook is subject to two key risks namely: slow progress on SOE and banking sector reforms could adversely impact macro-financial conditions and adverse turn of events in the global economy could undermine Viet Nam’s growth prospects, given the relatively large size of the export sector.
Source: VOV
