Posted by A seminar recently took place in Hanoi as part of the Vietnam-Korea Knowledge Sharing Program (KSP) to announce the final report on Vietnam’s development path and economic potential. Korean and Vietnamese experts taking part in the seminar predicted that Vietnam will achieve an annual economic growth rate of 7.5-8.5 percent for the next 10-15 years.
Impressive growth
Korean experts remarked that since 1986, Vietnam has been pursuing a comprehensive renovation process and, step-by-step, it has integrated into the global economy. Since 1992 Vietnam has obtained an average GDP (Gross Domestic Product) growth rate of more than six percent a year. Thanks to this, the lives of Vietnamese people have improved considerably.
Along with GDP growth, investment in Vietnam has increased at a high rate. Dr. Han Chin Hee from the Korea Development Institute (KDI) said, “In the mid 1990s, the investment rate of Vietnam was higher than that of industrial and sub-Sahara African countries. Since 2000, Vietnam has become one of the top countries in the world in terms of the investment rate.”
Regarding forecasts on the growth of the Vietnamese economy over the next decade, Dr. Vo Tri Thanh, the Deputy Director of the Central Institute for Economic Management (CIEM) of the Vietnamese Ministry of Industry and Trade, said, “Two questions have arisen: 1) Is it true that Vietnam had a successful start and is on the right renovation path in order to catch up with the rhythm of global development?; and 2) If that is true, will Vietnam be able to maintain such growth?”
Vietnam has maintained strong economic growth throughout the last two decades, so the answer for the first question is a resounding ‘Yes.’ Vietnam is continuously boosting economic growth and looks like it will go ever-further on its development path. In terms of demographics, the population growth rate in Vietnam has decreased (the highest was in the mid 1980s). Meanwhile, the percentage of working-age people in Vietnam’s population has increased. Mr. Thanh said, “A recent survey shows that countries that have undergone rapid changes in terms of demography have more human resources and grow faster than others.” Another advantage of Vietnam is that it is located in the center of Southeast Asia – a dynamic region in terms of economic growth and an attractive place in terms of investment opportunities.
Rising star?
Discussing Vietnam’s capability to maintain its growth, experts commented, “Vietnam has great potential for future development. It is forecasted that Vietnam can expect an annual economic growth rate of 7.5-8.5 percent for the next 10-15 years. The average GDP growth rate of Vietnam from 2007-2020 is predicted to be about eight percent a year.”
The TFP (Total Factor Productivity) growth in Vietnam has increased from 2.1 percent in 1990-2000 to 2.8 percent in 2001-2006 and is forecasted to continue to grow in the time to come. Technological progress, especially in the field of technology transfer via FDI (foreign direct investment) remains an important driving force for TFP growth. The Vietnamese Government has made great efforts to promote institutional renovation. Specifically, Vietnam has shifted from a centrally-planned to a market-driven economy; in 1987, the Law on Foreign Investment in Vietnam was promulgated; Vietnam has signed the Vietnam-US Bilateral Trade Agreement and joined many regional and global trade organizations. These are important factors that will help Vietnam continue to promote exports and maintain overall growth in the years to come.
In the opinion of experts, to be able to maintain economic growth, Vietnam must carry out further reforms so that it can attract more investment; it should specifically pay close attention to ensuring the quality of economic growth. Additionally, they said, Vietnam must improve the quality and capability of its human resources and infrastructure as well as the competitiveness of businesses./.
VEN
Related News:
- Stronger JPY to Boost Japan Investments in Vietnam - July 28th, 2010
- ODA rate of disbursement too slow - July 27th, 2010
- VN remains attractive destination for Japan investors - July 27th, 2010
- VN lures in more foreign investors - July 27th, 2010
- Vietnam- the best destination for investors - July 27th, 2010
- Investors target theme parks - July 27th, 2010
- Vietnamese firms focus more on Cambodia - July 26th, 2010
- EU Continues First Ranking in Trade and Investment - July 23rd, 2010
Subscribe via Email
Subscribe in a Reader
