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Manufacturing and services continue to drive Vietnam’s economy in 2019
The Hanoitimes – Vietnam’s economy still has huge potential for development and could maintain the growth momentum in the next two years.
The Vietnamese economy is expected to enlarge by around 6.9%-7% in 2019 and the inflation rate to remain below 4%. To achieve these targets, manufacturing/processing and services must grow at a higher rate than their performance in 2018 and be the main growth engines for the economy, according to the Prime Minister’s economic advisory group.
Vietnam’s economy still holds huge potential for development and could maintain the growth momentum in the next two years, said the group in a meeting with Prime Minister Nguyen Xuan Phuc on December 22.
The group pointed to four major bottlenecks, including difficulties in implementing large-scale projects, measures for stronger growth of the private sector, attracting more investment for agricultural sector, and efficient utilization of social resources.
Under the group’s calculation, investment capital from the private sector in the 2019 – 2020 period must reach at least 15% of the GDP to meet the growth demand. There should be more measures to support the development of the private sector and better access to the market.
At the meeting, the prime minister said that Vietnam’s economy has developed comprehensively amid growing global uncertainty, in turn building greater trust among the public.
Phuc stressed the country’s development must be based on its growth engines, along with science and technology.
He agreed with the proposal of the Ministry of Information and Communications on the implementation of the 5G network. Vietnam must create favorable conditions supporting people starting businesses in the country, instead of going abroad for start-up, he said.
Phuc requested the group to cooperate with Singapore in developing an innovative research center.
Prime Minister Nguyen Xuan Phuc in his assessment in August stated that the GDP growth rate in 2018 is on track to beat the 6.7% target.
Phuc informed that all 12 economic targets set by the National Assembly for 2018 could be achieved, eight of which may exceed the expectations.
The Asian Development Bank (ADB) in its latest report has maintained its forecast for Vietnam’s GDP growth rate for 2018 and 2019 at 6.9% and 6.8%, respectively.
The World Bank in its semiannual Taking Stock report released on December 11 expected Vietnam’s economy to grow 6.8% in 2018, before decelerating to 6.6% in 2019 and 6.5% in 2020 due to weaker external demand and global uncertainties.
Source: http://www.hanoitimes.vn/economy/2018/12/81E0D10D/manufacturing-and-services-continue-to-drive-vietnam-s-economy-in-2019/