Econ
Vietnam: Focusing on economic recovery and growth quality
Not only can Vietnam achieve the GDP growth target of 6.7%, but the growth quality has also improved. It is the first time that all 13 objectives for socio-economic development of Vietnam can be attained and exceeded the plan.
According to the Miistry of Planning & Investment, in the context of all industry sectors have maintained the growth rate, GDP growth rate for 2017 of Vietnam can reach 6.7%. And this is the first time that all 13 objectives for socio-economic development of Vietnam can be attained and exceeded the plan. These conclusions have been mentioned when the Department of Statistics announced the GDP growth rate for Quarter III/2017 is 7.46%, which increase the GDP growth rate for the first 9 months to 6.41%. According to the calculation of the Statistics Department, in order to achieve the GDP growth rate for 2017 at 6.7%, in the Quarter IV/2017, the GDP growth rate must be at 7.31%.
With regard to this target, experts said this is attainable if Vietnam can maintain the growth momentum of the 3rd Quarter. The National Financial Supervisory Commission even estimated that the GDP growth rate of 4th Quarter can be in range 7.5 – 7.7%. As such, the GDP growth rate in this year can exceed the target for this year. This is due to the fact that, in 4th Quarter, demand for consumption and investment is expected to increase significantly, due to the acceleration of the disbursement for infrastructure projects. Export will also increase due to strong demand from the holidays in the end of the year.
The General Secretary of the Vietnam Communist Party Nguyen Phu Trong highly regarded improvements of the economy in the first 9 months, with the stabilization of the macro economy and the financial market, as well as inflation is under control. Moreover, the foreign currency reserve is 45 billion USD, an increase of 6 billion USD compared to the same period of 2016. This is a meaningful number, as the foreign currency reserve of Vietnam is at the highest level, and shows the solid foundation for economic growth.
Not only the Vietnam’s economy is expanded in number, the growth quality is also improved. Evidently, the growth rate of productivity of the economy in 2017 is higher than 2016, at the rate of 5.87%, compared to the percentage of 5.29% of 2016. The total factor productivity (TFP: is the portion of output not explained by the amount of inputs used in production. As such, its level is determined by how efficiently and intensely the inputs are utilized in production) is also plays an important role in economic growth, which has been increased from 40.68% in 2016 to 44.13% in 2017, and is significantly higher than the average number of the period 2011 – 2015 (33.58%).
When both economic’s quantity and quality are improved, this has shown the effort of all economic components in Vietnam to strive for improvement in the current context of difficult global economic situation.
Another spotlight of the Vietnam’s economy is the number of newly established enterprises. According to the statistics of the General Statistics Office of Vietnam, in the first 9 months, Vietnam has 93,967 newly established enterprises and 21,200 enterprises back to operation. The number of enterprises stopped operation in the first 9 months is 49,345 enterprises, up 9.4% compared to the same period of last year.
