More than 250 economic groups including big names of Boeing, BP, General Electrics and top Vietnamese leaders will sit together to discus economic prospects and challenges at a two-day international conference slated by the Ministry of Foreign Affairs and the Economist of the U.K. for January 8 and 9 this year in Hanoi.
This year, Vietnam targets at GDP growth rate of 9 per cent with per capita GDP of US$930 to escape the low income earner status. To fulfill the targets, Vietnam will raise more funds for its infrastructure development and human resource training, the press said.
Total investment of the country for this year is estimated at VND567 trillion (US$35.44 billion), up 22.1 per cent on year and accounting for 42 per cent of the country’s GDP. Total exports will grow 20 per cent-22 per cent on year to US$58.6 billion.
To boost exports, Vietnam will focus on its 13 key commodities, which account for 78 per cent of its exports value.
Vietnam plans to raise ratios of its industrial and construction sectors in GDP to 42.2 per cent this year, up from 41.8 per cent last year, services to 38.5 per cent from 38.2 per cent, and reduce proportion of agro-, forestry and fisheries to 19.3 per cent from 20 per cent.
Vietnam plans to collect VND323 trillion (US$20.18 billion) for its state coffer in the fiscal year of 2008, up 12.2 per cent on year and account for 24.1 per cent of the country’s GDP, Minister of Finance Vu Van Ninh was cited by local Vietnam Financial Times as saying.
To fulfill the tasks, Ninh noted that ministries, sectors will focus on reducing tax arrears, reduce subsidy and restructure state-owned enterprises and boost privatization of SOEs.
The stock market now becomes an effective channel for Vietnamese firms to raise funds for their business and operation expansions. Last year, they raised VND90 trillion from the market. The market capitalization of the two bourses account for 40 per cent of the GDP, and is expected to reach between 50 per cent and 60 per cent this year, Vu Bang, the chairman of the State Securities Commission said.
By the end of last year, Vietnam’s shares index soared 23 per cent with VN-Index closing at 972.02 points up from 751.77 points in 2006 with the market capitalization reaching VND367.9 trillion, up 144.6 per cent on year.
SSC will have measures to stimulate the supply and demand this year, Bang noted.
However, Vietnam is still facing challenges in capital disbursement for infrastructure development, human resource training and growing inflation triggered by growing greenback inflows including the record FDI level of US$20 billion last year, US$5.4 billion pledged by donors and growing overseas remittances.
Half of the US$5.4 billion will be used for infrastructure development. Last year, only US$2 billion of Vietnam’s pledged ODA of 2007 was disbursed for infrastructure projects.
The World Bank warned in mid-December that Vietnam’s purchasing power dropped 30 per cent to US$178.1 from US$255.6 in 2005, or per capita GDP was down to US$2,142 from US$3,076. (Local sources)
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