Econ
Key for sustainable development
At the government’s monthly meeting on solutions for development, representatives from ministries and corporations are confident of attaining their respective objectives.
Agriculture has high chance of obtaining the 3% growth rate with total export value above 33 billion USD, while the target growth rate of 12% for manufacturing industries is also achievable; tourism sector is expected to welcome 13-15 million foreign tourists; textile and garment will grow 10% with total export value of above 30 billion USD.
For the last 7 months, despite many challenges, the efforts by ministries, enterprises and provinces prove the target growth rate of 7.42% for the remaining months are attainable. The government is under pressure to achieve its five year economic growth objective of 6.5-7%. However, as this growth rate was unobtainable in 2016, and if the GDP growth rate for 2017 also failed to be achieved, the growth rate for the remaining 3 years 2018, 2019 and 2020 must be high enough for the average growth rate in 5 years to reach 6.5-7%. The determination from the government is supported by the public, but the question is how to achieve a high growth rate, but but yet sustainable for a long term?
Some solutions for accelerating GDP growth have been put forth. However, boosting crude oil pumping and coal mining will face the risks of loss due to low prices and pollution. Elevating public investment implies increasing public debt and threat to financial security due to inefficient management of state fund. On the other hand, rapid credit growth rate is associated with credit quality and inflation. In term of agricultural development, it is necessary to have consistent policies and measures to avoid oversupply. With this being said, all of these measures contain potential risks to the economy.
In order to achieve sustainable development, international experts said the driving force for this objective is productivity and competitiveness. Economic restructuring is insufficient with determination, but with practical and efficient measures. As the government has identified private sectors being the driving force of the economy, pushing forward with state owned enterprises equitization and creating favorable conditions for private enterprises to flourish are appropriate measures. The biggest bottleneck at the moment is administrative procedures. In spite of the Prime Minister’s determination, this is still considered major challenge for growth. Bearing this in mind, when this bottleneck is solved, this will create momentum for growth while Vietnamese economy has very high potential. This is also the foundation for the government to realize the economy’s potential in the most practical and efficient way.
For the last 7 months, despite many challenges, the efforts by ministries, enterprises and provinces prove the target growth rate of 7.42% for the remaining months are attainable. The government is under pressure to achieve its five year economic growth objective of 6.5-7%. However, as this growth rate was unobtainable in 2016, and if the GDP growth rate for 2017 also failed to be achieved, the growth rate for the remaining 3 years 2018, 2019 and 2020 must be high enough for the average growth rate in 5 years to reach 6.5-7%. The determination from the government is supported by the public, but the question is how to achieve a high growth rate, but but yet sustainable for a long term?
Some solutions for accelerating GDP growth have been put forth. However, boosting crude oil pumping and coal mining will face the risks of loss due to low prices and pollution. Elevating public investment implies increasing public debt and threat to financial security due to inefficient management of state fund. On the other hand, rapid credit growth rate is associated with credit quality and inflation. In term of agricultural development, it is necessary to have consistent policies and measures to avoid oversupply. With this being said, all of these measures contain potential risks to the economy.
In order to achieve sustainable development, international experts said the driving force for this objective is productivity and competitiveness. Economic restructuring is insufficient with determination, but with practical and efficient measures. As the government has identified private sectors being the driving force of the economy, pushing forward with state owned enterprises equitization and creating favorable conditions for private enterprises to flourish are appropriate measures. The biggest bottleneck at the moment is administrative procedures. In spite of the Prime Minister’s determination, this is still considered major challenge for growth. Bearing this in mind, when this bottleneck is solved, this will create momentum for growth while Vietnamese economy has very high potential. This is also the foundation for the government to realize the economy’s potential in the most practical and efficient way.
