The global economy is expected to see growth in 2014, which would benefit emerging countries, including Vietnam, said a Vietnamese economist.
The Vietnamese real estate market forecast to remain stagnant in 2014 after many years of stagnation According to Economist Dr. Dinh The Hien, the world economy will grow by 3.5% in 2014 compared to 2.9% in 2013.
He cited the Economist Intelligence Unit of The Economist as saying that the Japanese economy will achieve a GDP growth rate of 1.7% in 2014. Meanwhile, the International Monetary Fund (IMF) is upbeat about the US economy, saying that the country’s GDP growth could reach 3% in 2014 against 2% in 2013.
The IMF also predicted that China would post a GDP growth rate of 8.5% in this year from 8.2% in 2013.
Hien says that these signals in the world economy bode well for the Vietnamese economy, as they will open up opportunities and attract foreign direct investment (FDI) and official development assistance (ODA), stimulate exports and help to stabilise interest rates as well as the prices for food and gold.
Prospects for the retail sector
According to Dr. Dinh The Hien, this year, the environment of Vietnam’s investment sector will continue to improve thanks to the positive impacts of the global economy and the effects of policies implemented by the government, including a reduction in corporate income tax from 25% to 22%, beginning January 1, 2014.
In 2014, Vietnam has raised this year’s targeted budget deficit rate to 5.2% of the GDP from the previous rate of 4.3%, while pledging to control inflation rate to the single digits. These are all good signs for Vietnam’s economy, Hien said.
The Asian Development Bank (ADB) forecast that Vietnam’s GDP growth would reach 5.5% and inflation would be curbed at 7.2%.
Export-oriented sectors, such as garments and textiles and seafood, will see further development, generating more jobs.
These stabilising macro-economic policies are expected to boost production areas for domestic consumption, which is a favourable to the retail sector.
In 2013, the Vietnamese retail sector grew only 12.6%, the lowest growth rate in the past four years. However, this year, the situation is expected to be better because of higher domestic demand.
Nonetheless, Dr. Dinh The Hien said that in 2014 the local real estate market would remain stagnant after many years of stagnation.
Đăng ký: VietNam News