Business environment - biggest expectations of economy in 2017
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How do you think about the ability to accomplish the goals of economic growth in 2017 which has been set out and what will be the economic highlight of 2017?
Basically, in 2017, the world economic situation has brighter prospects for. The forecast of the International Monetary Fund (IMF) in October of 2016 shows thatworldwide GDP growth has reached only 3.1% / year until the end of 2016 and into 2017 the figure is 3.4%. But according to the World Bank (WB), the world's growth continued to remain at 2.9% in 2016 and 3.1% in 2017. To 2017, oil prices could rise as demand for crude oil of the world may slightly rise and more consensus (whether openly or covertly) of the petroleum exporting countries on oil price controls. In 2017, the economy of the US and some other countries would be better, therefore with the increasing of exports will also lead to the rise of Vietnam's economy.
Besides the favorable factors, in 2017 Vietnam will continue to face difficulties and challenges, from the world economic environment with many unstable potential traditional and non-traditional, natural disasters, climate change, armed conflict and increasing public debt. Slowed agriculture growth, the economy is still mainly relying on the FDI sector, the process of overall restructuring has been slow, the financial system is still heavily dependent on the banking sector, the bad debt problems continue to pose challenges to sustainable economic development.
But in total, economic growth in 2017 will be improved rather, capable of reaching 6.7% by institutional reform, improving the investment environment, creating new impulses for the private sector to become the main motivation of 2017, as well as the world energy and agricultural prices is forecast to rebound. Vietnam continues to ensure full payment and promptly the debts as committed with lending mechanisms and management of public debt will be more marketable, especially the re-lending mechanism of People's Committees from ODA capital and preferential loans from donors. America is still the export market and largest trade surplus, while China remained as the biggest importer and the trade deficit of Vietnam. The investment environment continues to improve, motivational to extend increased social investment operations, it is reflected in the increase in the credit balance of banks, increasing the registered capital of newly established and re-operation enterprises, additional capital investment in expansion, implementation of FDI capital and disbursements from the State budget. I think the highlight of the economy in 2017 is the private sector, the FDI sector, a number of high-tech agriculture and tourism sectors.
In your opinion, what is the motivation to achieve the growth targets set by the Government?
Overall, in the context of the world has many negative fluctuations diminishes the momentum of overall growth, however the targets of socio-economic development in 2017 are given is not an illusion, which is based on resonance of motivation and convergence from positive impulses that Vietnam has achieved in 2016.
The outstanding platform is the improved investment environment, increasing scientific and technological application continues to participate in intensive international integration, further more, the economic growth rate is higher quarter by quarter. Agriculture recovers gradually, export surplus increases significantly. Market and social confidence of people and enterprises is maintained, the number of newly established enterprises, returning to operation increased significantly. Besides, the growth momentum has been fueled from the maintaining of total consumption from domestic economy, the success of the more flexible central exchange rate regime.
A different motivation is high GDP growth while low inflation and social investment rate / GDP shows that the growth momentum is not only investment and it seems that the higher economic growth required to pay with higher inflation is not true, and is no longer a "limitation" to Vietnam.
Growth motivation in 2017 also increased from market confidence; strengthening the international position and expectation of new opportunities coming from the results of the negotiations, signing and implementation of commitments also proactively international integrating of Vietnam; from the positive movement of economic restructuring, especially in the mergers and acquisitions of banks and the transfer of real estate projects, retrieving of delayed projects, misusing of lands; equitization of units with their own income and expenditure, and increasing use of new varieties, application of storage technology, modern processing of agricultural products, expanding the participation enterprises to invest in agriculture in the supply chain model and industrial scale.
In addition, the motivation of growth will be powered by the movement of the management and political systems which create all conditions, remove all barriers to the production and business of the people and enterprises, promote entrepreneurship; develop supporting, processing, manufacturing industries, associated with the advantages of agriculture, forestry, fisheries resources. These motivations will contribute to the rapid and effective boost of economic development, in preparation for developing the country with great and confidence expectations in 2017.
With the message which was created by the government, in accompanying with enterprises, how do you comment about the investment environment in Vietnam in 2017?
In this year, the business environment of Vietnam will still be improved. According to Business Environment Report 2016 by World Bank showed that, the business environment ratings of Vietnam in 2016 increased by 9 levels at 82 out of 189 rated countries . In these, the index of minority investors protects rose up31 levels, the tax payment index of Vietnam rose 5 levels, from position of 173/189 to 168/189.
CPI of January 2017 forecasted to increase slightly VCN- According to the Price Management Department under the Ministry of Finance, the demand of shopping in ... |
The position of Vietnam also increased upto 12 levels according to the World Economic Forum which shows that due to a better business environment, the number of new businesses registrations increased along with the number of people who were satisfied when being asked about the issue of tax payment. All these things help the growth motivation of 2017 be stronger. It is also the recent greatest hope and the greatest expectations of Vietnam.
Thank you very much!
By Thu Hien/Hoang Nam
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