Vietnam's gross domestic product (GDP) growth rate is forecast to reach5.67 percent next year, while its consumer price index (CPI) will be 7percent. Experts predicted the financial climate next year would bringin winds of change.
According to the National Centrefor Socio-Economic Information and Forecast under the Ministry ofPlanning and Investment, the economy will see a lighter index ofrecovery, while inflation will be restrained at single digit figures inthe next two years.
Mai Thi Thu, the centre'sdirector, addressed a conference in Hanoi on December 12 on Vietnam'seconomic outlook in 2014. She spoke about the effects of theGovernment's policies promulgated this year to stabilise themacro-economy, which would lead to positive effects on the economy.
Corporate income taxes are poised to be lowered, from 25 to 22 percent in parallel with reducing lending interest rates at 10-13 percentnext year. This would facilitate businesses in expanding production.
"The biggest opportunity for Vietnamese enterpriseslies in the country's stable macro-economy and gradual recovery of theworld market," Thu said.
She said that therelatively low CPI, increasing exports and improved foreign reserveswould be necessary conditions for recovery of companies. The forecastalso indicated that FDI inflows would increase next year, thus bringingopportunities to domestic firms, she added.
In thesame vein, Doan Hong Quang, economic specialist from the World Bank inVietnam, said that the country's economy would depend on the world'srecovery.
The participants, however, pointed out thepotential risks for the economy next year as it faced barriers of lowdemand, bad debts, low investment effectiveness and a slow restructuringprocess.
The centre's figures revealed that thetotal investment this year indicates a slow growth. By the end of thethird quarter this year, the country's total investment rose only 6.1percent year-on-year.
In addition, capital scalewas also narrowed as gross fixed investment as the percentage of GDPlast year was less than 30 percent, while the percentage was 40 percentin the years before 2008.
Nguyen Huy Hoang, from thecentre, said that the decreasing capital scale and low effectiveness inusing capital would reduce the economy's competitiveness, thus bringingin a possible instability, when considered on a long term landscape.
Hoang said the trend of market expansion andparticipation in free trade agreements would also bring competition ininternational markets, lower production costs and selling prices fordomestic businesses.
The Government should havepolicies to support enterprises in the days ahead, he said, adding thatthe policies could focus on improving investment environments,simplifying administrative procedures and improving the infrastructure.
Specifically, there should be policies to untie theinventory of VND100 trillion (4.7 billion USD) in the real estatesector. The Government would also need to promote the domestic marketwhile preventing the inflow of smuggled and counterfeit goods.
"If the policies are effectively implemented next year, it will be apreparation for a step into a high quality, sustainable period," hesaid.-VNA
According to the National Centrefor Socio-Economic Information and Forecast under the Ministry ofPlanning and Investment, the economy will see a lighter index ofrecovery, while inflation will be restrained at single digit figures inthe next two years.
Mai Thi Thu, the centre'sdirector, addressed a conference in Hanoi on December 12 on Vietnam'seconomic outlook in 2014. She spoke about the effects of theGovernment's policies promulgated this year to stabilise themacro-economy, which would lead to positive effects on the economy.
Corporate income taxes are poised to be lowered, from 25 to 22 percent in parallel with reducing lending interest rates at 10-13 percentnext year. This would facilitate businesses in expanding production.
"The biggest opportunity for Vietnamese enterpriseslies in the country's stable macro-economy and gradual recovery of theworld market," Thu said.
She said that therelatively low CPI, increasing exports and improved foreign reserveswould be necessary conditions for recovery of companies. The forecastalso indicated that FDI inflows would increase next year, thus bringingopportunities to domestic firms, she added.
In thesame vein, Doan Hong Quang, economic specialist from the World Bank inVietnam, said that the country's economy would depend on the world'srecovery.
The participants, however, pointed out thepotential risks for the economy next year as it faced barriers of lowdemand, bad debts, low investment effectiveness and a slow restructuringprocess.
The centre's figures revealed that thetotal investment this year indicates a slow growth. By the end of thethird quarter this year, the country's total investment rose only 6.1percent year-on-year.
In addition, capital scalewas also narrowed as gross fixed investment as the percentage of GDPlast year was less than 30 percent, while the percentage was 40 percentin the years before 2008.
Nguyen Huy Hoang, from thecentre, said that the decreasing capital scale and low effectiveness inusing capital would reduce the economy's competitiveness, thus bringingin a possible instability, when considered on a long term landscape.
Hoang said the trend of market expansion andparticipation in free trade agreements would also bring competition ininternational markets, lower production costs and selling prices fordomestic businesses.
The Government should havepolicies to support enterprises in the days ahead, he said, adding thatthe policies could focus on improving investment environments,simplifying administrative procedures and improving the infrastructure.
Specifically, there should be policies to untie theinventory of VND100 trillion (4.7 billion USD) in the real estatesector. The Government would also need to promote the domestic marketwhile preventing the inflow of smuggled and counterfeit goods.
"If the policies are effectively implemented next year, it will be apreparation for a step into a high quality, sustainable period," hesaid.-VNA
