Under siege Vietnam still has rosy long-term economic prospects,
according to a new report.
Ernst&Young's
"Rapid-Growth Markets Forecast" report, released late last month,
said Vietnam stood out as a high-potential economy and its on-going
difficulties would be a "temporary phenomenon."
"Vietnam has a young and
well-educated population of almost 88 million, modest labour costs, growth of 6
per cent targeted next year and scope for further economic restructuring. Its
long-term attraction for foreign investors is underpinned by improvements in
the economic environment and expectations of sustained high growth," the
report said.
The firm expects Vietnam's
economy to annually grow by almost 6 per cent over the next 25 years, making it
the third-fastest growing country among rapid growth markets.
The impressive potential is
headlined by the country's per capita income was expected to grow six-fold
during the next 25 years, while the number of households earning over $30,000
per year would rise from less than 6,000 last year to more than 60,000 in 10
years' time.
Meanwhile, manufacturing wages
were currently estimated to be half those in China and Thailand, which should
encourage a movement of operations to Vietnam to diversify production and take
advantage of lower costs.
London-based Legatum Institute in
early November, 2012 also trumpeted its Prosperity Index 2012 surveyed of 144
nations, with Vietnam ranking 53rd, up from 62nd in 2011 and 61st in 2010.
Vietnam was ranked 39th in economic health, 73rd in entrepreneurship and
opportunity, 55th in safety and security, 61st in governance, 80th in education
and health, and 35th in social capital.
The government last week also reported
that Vietnam's socio-economic situation in this year's first 10 months
continued witnessing "positive changes" with measures to taming
inflation and stabilising the macro-economy continuing to prove
"effective."
Specifically, the index for
industrial production (IIP) for October rose 5.8 per cent against September's
4.6 per cent. The IIP ascended 4.1, 3.2 and 2 per cent in August, July and
June, respectively.
Minister of Industry and Trade Vu
Huy Hoang told the National Assembly that local production continued to better
perform month-on-month. "Specifically, the inventory level in the
processing and manufacturing sector has reduced from 34.9 per cent by June 1,
2012 to 20.3 per cent by October 1, 2012, which was even lower than the 21.1
per cent on-year rise seen in October 1, 2012."
The government also reported that
October, 2012 saw about 6,000 newly established enterprises, while the number
of enterprises stopping operations remarkably decreased, with 1,000 in October.
This compares to nearly 5,000 in September, 5,000 in August and 4,000 in July.
In this year's first 10 months, more than 57,000 enterprises were newly
established, while some 41,200 enterprises dissolved and ceased operations.
The Government Office's Minister
Vu Duc Dam said such figures reflected the economy's rebound and many
enterprises were still performing well.
For instance, Tuong An Vegetable
Oil reported that in this year's first nine month, its revenue totaled VND2.94
trillion ($141.34 million) with after-tax profit of nearly VND34.4 billion
($1.65 million). Also, Thien Nam Trading and Import-Export Joint Stock Company
said its pre-tax profit for 2012 was expected to be VND50 billion ($2.4
million).
Danang Rubber Company reported
that its profit totaled nearly VND218 billion ($10.48 million) in this year's
first nine months, up 57.24 per cent on-year and exceeding 26.34 per cent of
this company's profit target for 2012.
Thanh Dat | vir.com.vn
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