In 2018, Vietnam expects economic growth to reach 6.4 – 6.8%

• Dec 11, 2017

The Hanoitimes – In Business Forum 2018 with the theme of “Adaptation in a changing economic environment” recently organized by the Vietnam Chamber of Commerce and Industry (VCCI), experts say that in 2018, conditions for economic development are much better. Vietnam`s business environment has never been fully absorbed via the political system.

In 2018, world economic and trade growth is forecasted to be higher than that of 2017, facilitating economic growth and exports. In addition, the Government will implement measures to further accelerate the reform of administrative procedures, improve the business investment environment and promote start-ups. Congress has enacted a law supporting small and medium enterprises to promote radical growth in 2017 that will also be effective in 2018. Vietnam’s economy in 2018 will therefore turn the variable more extreme. It is the reason to expect that economic growth in 2018 will be higher than 2017, maybe in the range of 6.4% to 6.8%.

However, Deputy Director of the Central Institute for Economic Research (CIEM) Phan Duc Hieu also pointed out: “The message of the Government is clear, business enterprises can operate more easily, but each compulsive competition is fiercer on integration. Businesses that do not change will be removed from the game.

A survey from CIEM shows that the competitiveness of Vietnamese enterprises is at 113/128 country. In term of Absorption Technology, Vietnam is ranked 93/128 countries. In term of Patent invention, Vietnam is ranked 91/128 countries. The ability to create new products in Vietnam is far from other countries in the world. Domestic enterprises are still limited in terms of scale, operating capacity, leading to restrictions on competitiveness.
 

 
Mr. Bui Ngoc Son from World Economic and Technical Institute took example that in the changing context of world trade when the United States abandoned multilateral play, Vietnamese businesses wanting to keep market share in the US must raise standards, because American bargaining advantage is higher than before, so the standard to enter the US market will also be higher. At the same time, Vietnamese businesses need to increase their business discipline to avoid litigation and / or punishment in important markets such as Japan and the EU,”Son said.

Talking about access to credit capital, expert Vu Dinh Anh analysize that in 2017 Vietnam stock market growth is the fastest in the world, the VN Index is likely to 1000 points, up 50%. This shows that the channel to mobilize resources for enterprises is very large, the problem is how to approach businesses completely depends on the characteristics of each enterprise. “In 2018, the support for state enterprises in terms of capital will be much more but must follow the market,” Anh stressed.

The short message that professionals want to convey is that businesses must abandon the business based on feelings, “small but professional”, this is what enterprises have to do to survive.

Source: http://hanoitimes.com.vn/economy/2017/12/81E0BC98/in-2018-vietnam-expects-economic-growth-to-reach-6-4-6-8/