Minister confident of 5.8% GDP growth for 2014

(VOV) – In a keynote address at the Vietnam Business Forum (VBF) in Hanoi on December 2 Minister of Planning and Investment Bui Quang Vinh revealed with confidence that economic growth for the year will reach 5.8%.

There is consensus in the government that most targets approved by the National Assembly have been fulfilled for the year Vinh said, adding that achieving these goals is an important milestone.

Inflation has been constrained and the nation’s consumer price index (CPI) in November increased only slightly more than 2%, business failures are down and the number of new business registrations is on the upswing.

All of these statistics provide assurance the economy is solid with more robust economic times in the offing and the country can move forward with plans for further development, Vinh concluded.

The VBF has served as a structured dialogue between the government and the business community targeting an improved economic environment in Vietnam.

This year’s business forum takes place against the backdrop of the economy showing optimistic signs of growth on the back of successful implementation by the government of several key resolutions and reforms.

Key among them were the government’s Resolution 19 focused on key solutions and tasks to improve business environment and national competitiveness, Resolution 15 on State-owned enterprise reform and Circular 119 on tax reform.

In addition, the National Assembly adopted a revised Enterprise Law and Investment Law, which aims to create an environment more conducive to increased transparency.

This presents a very encouraging signal to the business community that it can have full confidence in the government’s commitment to take further action in order to take full advantage of new free trade agreements (FTAs) that Vietnam currently and will engage in.

It also definitely has a very positive impact to restore business confidence in doing business and to realize the achievable goal of more favourable investment climate for Vietnam.

The two-day forum has six main issues on the agenda – public debts and bad debts, measures to boost the development of the private sector (including small-and medium-sized enterprises and State-owned enterprises), labour, acceleration of SOEs’ equitisation, administration reform, and arising issues when joining free trade agreements.

At the event, Virginia Foote, co-chair of the VBF, in turn said FTAs would bring about huge opportunities for Vietnam and a number challenges. Therefore it is critical for the country to thoroughly prepare.

Foote said businesses at the forum should not hesitate to put forth their suggestions on measures they believe would help the country grasp opportunities brought about by FTAs.

Especially those focusing on reforming investment environment, financial and banking system, administration procedures, and SOEs, and raising productivity, Foote said.

Earlier, the General Statistics Office of Vietnam (GSO) reported that GDP rose by 5.62% in the first quarter, 5.09% in the second and 6.19% in the third quarter.

Leading economists have forecast that if the GDP for the fourth quarter is higher than the previous three quarters for the year, Vietnam would have fulfilled its growth target for the year.

That would make it the third consecutive year in a row, the country has done so, they said.

For her part, Wendy Werner, International Finance Corporation (IFC) Regional Business Line Manager, spoke about Vietnam’s success in stabilising the macro-economy.

This is clearly evidenced by the nation’s rising credit rating and the government’s recent successful issuance of US$1 billion international bonds in the international bond market, Werner said.

Werner further opined that although local businesses have shown their great effort to overcome difficulties in recent times, many local enterprises are simply too small to compete at international market.

Low productivity and underdevelopment of the support industry are other obstacles that must be overcome, Werner said noting Resolution 19 is an important step in the right direction.

Echoing Werner’s views, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the Resolution 19 is a refreshing breath of fresh air for stimulating reform, ironing out snags and creating trust in the government.

He hoped that the government continues to remove obstacles in public reform.