Vietnam’s economy is slowly crawling out of a deep hole, with foreign
firms’ more upbeat views on the nation. The government last week announced the
gross domestic product (GDP) growth for this year’s first nine months was
estimated at 4.73 per cent against last year’s corresponding period, when GDP
growth climbed 5.76 per cent year-on-year.
“Though the January-September
GDP is lower than that in the same period last year, it mirrors great efforts
of the government in a context that the government has to focus on curbing
inflation and stabilising the macroeconomy,” said Vu Duc Dam, Chairman of the
Government Office.
GDP has increased from 4 per cent
in the first quarter to 4.66 per cent in the second quarter and 5.35 per cent
in the third quarter.
“Foreign investors remain upbeat
about Vietnam’s recovering economy. The 4.73 per cent rate is low as compared
to the initial target, but far higher than the GDP growth levels in so many
countries in the world,” said Minister of Planning and Investment Bui Quang
Vinh. Some foreign firms said this rate was “impressive” and they stayed
optimistic about the economy’s health.
“Vietnam has seen impressive GDP
growth as a result of economic reforms. The growth rate is forecast to be
around 5 per cent for the next two years. The rate should be the envy of many
developed economies,” said James Turley, global chairman and CEO of Ernst &
Young.
Ernst &Young forecast
rapid-growth markets performers in 2013 in Asia were expected to be China and
Hong Kong (8.6 per cent), India (8.5 per cent) and Vietnam (7.1 per cent).
“Since 1986, Vietnam has been on
a journey of economic reforms – stimulating economic growth, while opening the
country up to new international markets. Vietnam has made great strides in
becoming a global player. Not least through WTO accession in 2007 and, is
increasing its competitiveness relative to others in the region, particularly
China,” Turley stressed.
Benjamin Keswick, managing
director of the UK’s Jardine Matheson Holdings, said the GDP growth rate [of
4.73 per cent] was “a big effort and impressive achievement” of the government
in macro-monitoring.
“Jardine has a big investment
portfolio in Vietnam. We believe that Vietnam’s economic difficulties are
short-term, meaning that we will continue our investments in this market in the
long-term.”
Echoing these views,
Malaysian-backed Hong Leong Bank’s chief executive officer Yvonne Chia said
most foreign investors foresaw Vietnam’s big future potential and showed great
confidence in the government’s economic monitoring. Hong Leong Bank last week
opened its fourth branch in Vietnam, in southern Binh Duong province.
The government reported that the
industrial production index had increased month-on-month, from 2 per cent in
June, 3.2 per cent in July and 4.1 per cent in August to 4.6 per cent in
September. Meanwhile, the inventory had reduced from 34.9 per cent in March to
32.1 in April, 29.4 in May, 26 in June, 21 in July and 20.8 in August down to
20.4 per cent in September. Also, the total retail and service revenue in
September ascended 1.08 per cent on-month. The on-month increase level was 0.7
per cent in August and 0.1 per cent in July. In June, the revenue decreased 0.5
per cent on-month.
“These figures show the economy
is gradually recovering,” Dam said. However, he said to reach the target of 5.2
per cent GDP growth this year, the remaining three months had to see an average
GDP growth rate of 6.5 per cent. “This is a difficult job and the government
must monitor the economy skillfully.”
Thanh Thu | vir.com.vn
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