Believing in the prospect of economic development in Vietnam 2018

Results of socio-economic development in the first months of 2018 are very positive. Photo: Internet.

Confidence is strengthened

Speaking at the workshop, Prof. Dr. Nguyen Mai, Chairman of the Association of Foreign Investors (VAFIE), said that now we have a very active government, the creative and active government focuses on institutional and public administration reform. Thanks to that, we have attained high achievements in growth. 2017 is the year we got the highest growth rate in many years. The domestic and foreign investors, as well as the people appreciate the efforts of the Government.

Prof. Dr. Nguyen Mai also emphasized that after 30 years, foreign investment has made important contributions to the Vietnamese economy. Currently, 25% of the investment capital is FDI.

"In 2017, the disbursement of FDI reached a record $ 17.5 billion, this year I think the disbursement of FDI capital will reach about $ 19 billion. This is an important motivation of growth that together with the private sector, plays the role of the legs of a healthy body, which will help the Vietnamese economy to be more stable," said Prof. Nguyen Mai.

Regarding the economy in 2018, Minister of Planning and Investment Nguyen Chi Dung, said that the results of socio-economic development in the early months of 2018 are very optimistic, following the momentum of development in 2017. GDP growth rate reached 7.38%, the highest level of a first quarter in 10 years. Macroeconomics continues to be stable, inflation under control.

The disbursement of FDI capital reached $ 5.1 billion, up 6.3%. The number of newly established enterprises reached over 41.2 thousand with the registered capital of about 412 trillion VND. Total export value is estimated at 73.76 billion US dollars, up 19%; Trade deficit reached about 3.39 billion USD ...

"These are positive signs while there are also many favorable factors in the domestic and international context impacting positively on the economy. There are many reasons for us to fully believe in the prospects of Vietnam's economy in the last few months of 2018 and the years ahead, " said Minister Nguyen Chi Dung.

However, to achieve the goals and expectations, the head of MPI communicates important issues that the Government has been working on to realize the drivers of growth.

Institutional innovation is the foundation

The Minister of Planning and Investment emphasized institutional reform. This is considered as a fundamental driving force for economic growth, as well as the need for innovation in the context of rapid change and a mandatory requirement for development.

According to Minister Nguyen Chi Dung, in recent years, the reform of the institutions has made many positive changes, many legal documents on investment and business have been built on the spirit of change. The Law on Planning, the Law on SME Promotion, the Law on Special Administrative Units, the Law amending and supplementing a number of articles of the Law on Public Investment ... creating a strict legal framework and it is very convenient to promote all advantages for fast and sustainable development.

Typically, the Law on Special Economic Administrative Units. This draft law will be considered and approved by the National Assembly at its fifth session, creating a legal basis in time for the formation and development of three special economic administrative zones, becoming the driving force and growth pole soon of the whole economy.

"However, this is only the first step. Looking at the overall institutional reform agenda, we still have a lot of work to do," noted Minister Nguyen Chi Dung.

Regarding institutional reform, Mr Phan Duc Hieu, Deputy Director of the Central Institute for Economic Management (CIEM) said that some results have been achieved, but overall the pace of reform has been slow to meet the expectations of enterprises.

Mr. Phan Duc Hieu emphasized: "We talk a lot about institutional reform. Resolution 19 of the Government sets the target that Vietnam's business environment will reach the average level of ASEAN 4 in 2015, but the distance is still very far away. To achieve this goal, we have to rank 40th in the world, in fact currently at 86th. "

Mr Phan Duc Hieu, a consultant, also noted that the Government has directed strong elimination of business conditions since August 2017, but up to now, after 10 months, many ministries have not yet seriously implemented them.

Focus on developing private economy

The next important issue highlighted by Minister Nguyen Chi Dung, is the labor productivity and the impact of the industrial revolution 4.0, the most important factor in improving the quality of growth. That's taking advantage of the industry revolution of 4.0. If we do not take advantage, it will take many years to get this opportunity again.

Another important issue being considered by the Government is the development of the private sector combined with strong linkages between the domestic economic sector and the foreign investment sector .

Accordingly, on the basis of summing up the practice of 30 years of attracting foreign investment in Vietnam, the Ministry of Planning and Investment will advise a number of major orientations in attracting FDI in the new context. The context of the fourth industrial revolution, connecting the two domestic and foreign sectors together, will develop and contribute more and more to the common prosperity of the country.

"The socio-economic situation in the first months of the year is very positive. But this is the first step, the task until the end of the year is very hard, requiring all of us to make every effort, continue focusing on fast, drastic and effective implementation of tasks and solutions. Especially in fields directly related to production, business and investment of enterprises and people," said Minister Nguyen Chi Dung.