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Vietnam economic growth rate expects to rise 6.5 - 7 percent

Thu, 11 Jun 2015. Last updated Thu, 18 Jun 2015 14:39

The Head of Government confirmed that the current Vietnam economic growth rate has not stable. Vietnam needs to strive more to ensure the target growth of 6.5 - 7 percent. Vietnam economy will enter a new phase with fast pace of development.

Speaking at the mid-term Vietnam Business Forum on June 9, Prime Minister Nguyen Tan Dung affirmed that Vietnam economy in the first five months developed more significantly than that in 2014. However, the leader has not satisfied about the result. He stressed that the achievements are unstable and incommensurate to the potentials in Vietnam. Vietnam can do it better. The Prime Minister expected that in the near future the disadvantages of economy in Vietnam will be solved. Vietnam government ensures that the inflation will not exceed 5%, interest rate, exchange rate is stable according to market signals, forex reserves is at least 12 weeks of imports. Also, the budget deficit in 2015 is at 5% of GDP and gradually falls in the next 5 years, the public debt in the safe limitation, and export has a growth of 10-15% per year...

 

Growth chart

 

At the mid-term Vietnam Business Forum (VBF), Prime Minister Nguyen Tan Dung made the forecast for Vietnam economic growth rate to speed up to 6.5-7% / year over the next 5 years from an estimated 6.2% in 2015. Speaking at the forum with theme "Improving business competitiveness in international integration", Vietnamese Prime Minister said that the government will further drastically improve business environment and enhance the competitiveness of the economy. Vietnam government will deal with difficulties and create favorable conditions for businesses in Vietnam (small and medium, domestic and international) to have more revenue, which will be the motivation to enhance Vietnam economic development in three sectors: Industry, agriculture, and services. The Prime Minister pledged Vietnam economic growth speed will increase up to 6.2% in 2015 at the forum. Also predicting a 5-year plan, from 2016 to 2020, Prime Minister Nguyen Tan Dung said, "Vietnam GDP will grow between 6.5% and 7% per year".

To improve the business investment environment in Vietnam, internally, the Vietnam government will focus on economic restructure, especially in state enterprises, accelerate the process of equitisation, bank restructure, and operate margin consistent with market rates. In addition, the government promotes the simplification of administrative procedures, shortens the time to pay taxes, customs declaration, and establishment registration, and strives to make indicators of the Vietnam business environment reach and exceed the average level of ASEAN-6 at the end of 2015 and reach the level of ASEAN-4 in 2016.

 

Vietnam - Korea Free Trade Agreement signing ceremony

 

Externally, the Prime Minister said that Vietnam is boosting negotiations of Free Trade Agreements. It is expected that Vietnam economy will get benefit from these agreements. Accordingly, it creates favorable conditions for businesses in Vietnam to invest. "Recently, we have signed Free Trade Agreements with South Korea, Eurasia Economic Union (including 5 countries). At present, Vietnam is in the final stages of negotiations to signed Vietnam - EU Free Trade Agreement, and the in the final phase of TPP. Thus, we will complete 14 free trade agreements. Vietnam will have free trade relations with 55 partners, including 15 members of the G20", the PM said. He said that the signing of the FTAs "is an important platform to create favorable market and investment business development environment for the enterprises in Vietnam.

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