Vietnam’s gross domestic product (GDP) will continue rising by 8.3 per cent this year and 8.5 per cent in 2008, up from 8.1 per cent last year, if the country further boosts public administrative and economic reforms, said the Asian Development Bank’s report.
Ayumi Konishi, ADB Country Director in Vietnam held a ceremony in Hanoi Mar 27 to present the annual publication, entitled “The Asian Development Outlook 2007”.
“It is essential for Vietnam to accelerate reforms in its economic and public administration systems” and once Vietnam does this successfully, the country will reach a high economic growth rate, Konishi said at the ceremony.
Konishi analyzed that Vietnam’s economic growth is based on advantages in exports, surging foreign investments, growing domestic consumption and modest inflation which is forecast at 6-7 per cent in the 2007-2008 period.
The ASEAN country’s WTO membership will bring many opportunities for its competitive commodities, including garments, textiles, footwear, wood products and seafood, which are predicted to grow by 18 per cent in the years to come, it said.
The trade gap is forecast to stay at 4.7 per cent this year, and drop to 3.8 per cent in 2008.
Omkar Shrestha, ADB Deputy Country Director to Vietnam said only Vietnamese and Indonesian economies will post higher growth rates this year, while growth in other Southeast Asian economies is projected to slow some what to an average 5.6 per cent this year, from 6 per cent last year, according to the ADO.
Vietnam’s GDP growth rate will be double-digit if it is built on the foundation of technological efficiency and innovation, with social investment accounting for 40 per cent of its GDP in the 2006-2010 period, Omkar Shrestha stressed.
However, Omkar Shrestha pointed out limitations Vietnam should address in the coming time, including inefficiency of State-owned enterprises; weak governance raising transaction costs; lower labor productivity than in some regional countries; shortage of skilled workers; and inadequate infrastructure.
The ADO also indicated that overall economic growth of Asia in 2006 was the fastest rate in more than a decade. The ADO 2007 forecasts developing Asian economies will expand at 7.6 per cent this year and 7.7 per cent next year. (Vietnam Economic Times, Vietnam & World Economy, Labor, Youth)
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