With certain advantages, Vietnam has been the destination for many multinational businesses to seek processors, and processing in turn have become a major growth engine of the economy (Illustrative photo: VNA) Hanoi (VNA) – With certain advantages, Vietnam has been the destination for many multinational businesses to seek processors, and processing in turn have become a major growth engine of the economy. Nguyen Trung Tien, Director of the Trade and Service Statistics Department at the General Statistics Office (GSO), said according to the 2017 economic census, there were 1,740 businesses processing goods for foreign companies in Vietnam in 2016. The value of materials imported for these processing and assembly processes accounted for 12 percent of the country’s total import turnover. Vietnam-based firms were paid 8.6 billion USD in processing fees by foreign businesses in 2016, including 7 billion USD for FDI businesses, 1.5 billion USD for non-State … [Read more...] about Processing – major contributor to Vietnam’s economy
Vietnam economy 2016
Vietnam economy forecast to grow by more than 7% in 2019
The Hanoitimes - World Bank (WB) Country Director for Vietnam Ousmane Dione appreciated what Vietnam has achieved in the context of global challenges. Many experts have forecast the Vietnamese economy will enlarge by 7%, and with drastic reforms taken, the growth will reach 7.06%. The National Center for Socio-economic Information and Forecast (NCIF) has released two growth scenarios for 2019 and 2020. Accordingly, Vietnam's economy may grow by 6.84%-7.02% in 2019 and 7%-7.2% in 2020. The NCIF's report shows that the economic growth in the period of 2016 - 2018 is on the rebound, but improving the quality of growth has not met the target. Labor productivity has improved but still falls short of expectation. The business environment has improved but its impacts have not been widespread. Public debt has declined, but foreign debt and debt servicing are tending to approach the safety limits. Head of Analysis and Forecasting Department (under NCIF) Dang Duc Anh said that there … [Read more...] about Vietnam economy forecast to grow by more than 7% in 2019
Vietnam economy is forecast to grow by more than 7% in 2019
The Hanoitimes - World Bank (WB) Country Director for Vietnam Ousmane Dione appreciated what Vietnam has achieved in the context of global challenges. Many experts have forecast the Vietnamese economy will enlarge by 7%, and with drastic reforms taken, the growth will reach 7.06%. The National Center for Socio-economic Information and Forecast (NCIF) has released two growth scenarios for 2019 and 2020. Accordingly, Vietnam's economy may grow by 6.84%-7.02% in 2019 and 7%-7.2% in 2020. The NCIF's report shows that the economic growth in the period of 2016 - 2018 is on the rebound, but improving the quality of growth has not met the target. Labor productivity has improved but still falls short of expectation. The business environment has improved but its impacts have not been widespread. Public debt has declined, but foreign debt and debt servicing are tending to approach the safety limits. Head of Analysis and Forecasting Department (under NCIF) Dang Duc Anh said that there … [Read more...] about Vietnam economy is forecast to grow by more than 7% in 2019
Vietnam economy steps into the late phase of business cycle: Brokerage
The Hanoitimes - For 2018, Vietnam`s inflation is estimated at 4-4.2% year-on-year. The Vietnamese economy is stepping into the late phase of the business cycle, while FDI corporations alone cannot drive the economy, according to Vietnam Dragon Securities Corporation (VDSC). Illustrative photo. Although there are large-scale private projects, most of them still depends on credit flows. The ratio of total credit to GDP has now reached 164%, the second highest level compared with other regional countries. On top of that monetary policy will be tighter in the next few years. The economy's recent momentum has been driven by domestic consumption. Moreover, Vietnam's macro-stability is being somehow threatened. It is possible to think about cost-push inflation as input costs rose sharply in the past few months. Oil and electricity prices are the main drivers. In addition, food prices surged. Although core inflation is still low, VDSC recorded a slightly stronger … [Read more...] about Vietnam economy steps into the late phase of business cycle: Brokerage
Low productivity poses risks to Vietnam economy
The Hanoitimes - Spillover effects from the FDI sector to domestic enterprises are considered a long-term solution for sustainable productivity development. Vietnam's low productivity growth remains one of the main challenges for Vietnam to achieve sustainable development, putting the country's economy at risk of being left behind by regional competitors, said Nguyen Duc Thanh, director of the Vietnam Institute for Economic and Policy Research (VEPR). Overview of the conference. Source: Ngoc Lam. Productivity as central issue "Productivity should be the central issue of reform," Thanh said at a conference on September 26, adding that a high productivity growth rate would result in Vietnam becoming a middle-income country and moving up the global value chain. This is also the objective of the economic restructuring process and institutional reform that Vietnam has been undertaking for many years, Thanh added. Thanh referred to a statement made by economist … [Read more...] about Low productivity poses risks to Vietnam economy