Thailand
Vietnam’s GDP projected at 7% in 2018
The Hanoitimes – The country’s growth domestic production (GDP) could reach 7.02 percent this year at the best scenario, according to the National Center for Socio-economic Information and Forecast (NCIF).
Domestic economic growth will be further improved this year thanks to the world’s favorable conditions and the government’s effective measures in removing the economy’s difficulties and improving the business and investment environment to accelerate the growth, NCIF anticipated.
In addition, signed new generation free trade agreements are also expected to bring about breakthroughs in business, investment and expansion of export markets.
“2018 will be the year Vietnamese enterprises are able to expand the penetration into the global markets,” the center forecast, adding that the equitisation of state-owned enterprises (SOEs) will be accelerated in 2018 and the development of the private sector will be the driver of economic growth in the coming time.
In addition, NCIF said, some large enterprises such as Samsung and Formosa are forecast to have high growth in 2018, which will be the driving force for the manufacturing industry and create momentum for the growth of the industrial sector in particular and the entire economy in general.
According to the NCIF, the attraction of foreign direct investment will also have positive prospects when it benefits from supporting factors such as high economic growth and international integration.
There are also optimistic factors in the country’s imports and exports thanks to improvements in the cooperative ties between Vietnam and other countries, the center said, adding that the better economic growth of Vietnam’s key trade partners in 2018 will also have a positive impact on the demand for Vietnamese goods.
“Prices of key commodities are also forecast in the uptrend, which will help increase trade revenue for Vietnam,” NCIF said, noting that the recovery of domestic production will also contribute to boosting the country’s exports and imports.
According to the NCIF, the trend of rising consumer spending is likely to continue as 2018 is anticipated to maintain a fairly positive trend of 2017. In terms of inflation, the NCIF’s report projected that inflation will be possible under control.
The General Statistics Office (GSO) reported that the country posted year-on-year GDP growth of 7.38 percent in the first quarter of 2018, the best first-quarter performance in the last ten years, backed by growth in manufacturing and agriculture.
The agro-forestry-fishery sector increased by 4.05 percent, contributing 0.46 percentage points to the 7.38 percent GDP growth. The industrial and construction sector posted a 9.7 percent growth rate, contributing 3.39 percentage points while the service industry climbed 6.7 percent, contributing 2.75 percentage points.
“While agriculture and wholesale and retail trade saw steady rises year-on-year, manufacturing remained the pillar of growth, expanding more than 13 percent, the fastest pace in the last seven years, thanks to robust production of electronics, computers and steel,” GSO general director Nguyen Bich Lam said.
Lam also attributed the high GDP growth to momentum from the third and fourth quarters of last year, which were 7.46 percent and 7.65 percent, respectively.
Vietnam targets an economic growth of 6.7 percent this year, which Lam said is still a challenge despite strong growth in the first quarter as the exports-driven Vietnamese economy becomes increasingly exposed to international market conditions.
He said the socio-economic situation in the first three months of 2018 took place in the context that the world economy was maintaining steady growth but with many unpredictable factors.
While major economies such as the United States, Japan, and the European Union were showing signs of improvement, China is losing momentum. Global trade recovery had been recovering but still faces many challenges due to rising protectionism in large countries, all factors affecting the Vietnamese economy and other regional countries.
“2018 will be the year Vietnamese enterprises are able to expand the penetration into the global markets,” the center forecast, adding that the equitisation of state-owned enterprises (SOEs) will be accelerated in 2018 and the development of the private sector will be the driver of economic growth in the coming time.
In addition, NCIF said, some large enterprises such as Samsung and Formosa are forecast to have high growth in 2018, which will be the driving force for the manufacturing industry and create momentum for the growth of the industrial sector in particular and the entire economy in general.
According to the NCIF, the attraction of foreign direct investment will also have positive prospects when it benefits from supporting factors such as high economic growth and international integration.
There are also optimistic factors in the country’s imports and exports thanks to improvements in the cooperative ties between Vietnam and other countries, the center said, adding that the better economic growth of Vietnam’s key trade partners in 2018 will also have a positive impact on the demand for Vietnamese goods.
“Prices of key commodities are also forecast in the uptrend, which will help increase trade revenue for Vietnam,” NCIF said, noting that the recovery of domestic production will also contribute to boosting the country’s exports and imports.
According to the NCIF, the trend of rising consumer spending is likely to continue as 2018 is anticipated to maintain a fairly positive trend of 2017. In terms of inflation, the NCIF’s report projected that inflation will be possible under control.
The General Statistics Office (GSO) reported that the country posted year-on-year GDP growth of 7.38 percent in the first quarter of 2018, the best first-quarter performance in the last ten years, backed by growth in manufacturing and agriculture.
The agro-forestry-fishery sector increased by 4.05 percent, contributing 0.46 percentage points to the 7.38 percent GDP growth. The industrial and construction sector posted a 9.7 percent growth rate, contributing 3.39 percentage points while the service industry climbed 6.7 percent, contributing 2.75 percentage points.
“While agriculture and wholesale and retail trade saw steady rises year-on-year, manufacturing remained the pillar of growth, expanding more than 13 percent, the fastest pace in the last seven years, thanks to robust production of electronics, computers and steel,” GSO general director Nguyen Bich Lam said.
Lam also attributed the high GDP growth to momentum from the third and fourth quarters of last year, which were 7.46 percent and 7.65 percent, respectively.
Vietnam targets an economic growth of 6.7 percent this year, which Lam said is still a challenge despite strong growth in the first quarter as the exports-driven Vietnamese economy becomes increasingly exposed to international market conditions.
He said the socio-economic situation in the first three months of 2018 took place in the context that the world economy was maintaining steady growth but with many unpredictable factors.
While major economies such as the United States, Japan, and the European Union were showing signs of improvement, China is losing momentum. Global trade recovery had been recovering but still faces many challenges due to rising protectionism in large countries, all factors affecting the Vietnamese economy and other regional countries.
Source: http://www.hanoitimes.vn/economy/2018/05/81E0C727/vietnam-s-gdp-projected-at-7-in-2018/