Vietnam’s economy to reach 300 billion USD by 2020
Speaking at the Vietnam Business Forum 2017 on December 12, the Prime Minister Nguyen Xuan Phuc stressed the importance of the business community for Vietnam’s economic prospects in the next decades.
According to the Prime Minister, the business community of Vietnam has been more mature and developing along with the country’s development, expanding both in quantity and growing in potential. As such, the business community has been the driving force contributing to Vietnam’s GDP growth in 20 years. In 1997 GDP of Vietnam was only 27 billion USD, but in 2017, this number has been nearly 220 billion USD. As such, the Prime Minister set target for Vietnam’s economy to reach 300 billion USD by 2020.
Besides, Vietnam’s economy has been growing strongly and achieved multiple targets in various aspects. In which, the economy has attained and even exceeded all 13 targets, creating a positive sentiment among the society. Among these achievements, Vietnam’s GDP growth rate of 6.7% is highest in recent 10 years, with stable macro economy, inflation rate under control, expanding export and the recovery of industrial sector.
Evidently, the number of newly established enterprises in 2017 has reached new record of 120,000 enterprises and registered capital of nearly 132 billion USD, while more than 25,000 enterprises have gone back into operation. The registered capital of FDI also is a record of more than 35 billion USD, up 30% with the disbursed amount of 17.5 billion USD, the highest number in the last 10 years.
The Prime Minister Nguyen Xuan Phuc stressed investment fund in the economy not only bring benefits for enterprises, but the investors are a “yes-vote” for the government’s effort in reform and creating a favorable business environment.
In the context of the recovery of global economy, industrial revolution 4.0, the growing trend of global integration, many researches and practical experiences showed that the economy heavily depended on cheap labor and natural resources is obsolete. Instead, technological sciences, knowledge and creativity are now the important factors. These require Vietnam to continue its reform effort.
In order to improve competitiveness, the Vietnamese government has issued Resolutions 19 and 35 with effort to improve business environment. These reforms have been acknowledged through better evaluation from international organizations such as World Bank or Moody’s.
Vietnam is entering the 3rd year in the 5-year plan of social-economic development from 2016 – 2020, with the overall objective of ensuring stable macro economy, striving for a higher economic growth than the previous year. Along with these targets is the effort to facilitate strong administrative reform. In order to become trusted partner for the business community development in the coming time, the government will focus on the following priorities:
Firstly, to focus on improving infrastructure, creating smart and efficient connections, reducing transaction fees, improving the enterprises competitiveness, investors and the economy. Especially, the government encourages a stronger investment in education, sciences and technologies, human resources, which are driving forces for growth.
Secondly, the government is aimed to maintain stable social and macro economy. According to the Prime Minster, this is an important competitive factor in the context of global uncertainties. The government will push forward with economic reform and development of private sector, financial and banking services, reducing the number of non-performing loans to reduce the burden of debt on enterprises, enhancing social welfare.
And thirdly, the government will improve institutional aspects and the law system toward transparency, integrity and efficiency.
According to the Prime Minister, the business community of Vietnam has been more mature and developing along with the country’s development, expanding both in quantity and growing in potential. As such, the business community has been the driving force contributing to Vietnam’s GDP growth in 20 years. In 1997 GDP of Vietnam was only 27 billion USD, but in 2017, this number has been nearly 220 billion USD. As such, the Prime Minister set target for Vietnam’s economy to reach 300 billion USD by 2020.
Besides, Vietnam’s economy has been growing strongly and achieved multiple targets in various aspects. In which, the economy has attained and even exceeded all 13 targets, creating a positive sentiment among the society. Among these achievements, Vietnam’s GDP growth rate of 6.7% is highest in recent 10 years, with stable macro economy, inflation rate under control, expanding export and the recovery of industrial sector.
Evidently, the number of newly established enterprises in 2017 has reached new record of 120,000 enterprises and registered capital of nearly 132 billion USD, while more than 25,000 enterprises have gone back into operation. The registered capital of FDI also is a record of more than 35 billion USD, up 30% with the disbursed amount of 17.5 billion USD, the highest number in the last 10 years.
The Prime Minister Nguyen Xuan Phuc stressed investment fund in the economy not only bring benefits for enterprises, but the investors are a “yes-vote” for the government’s effort in reform and creating a favorable business environment.
In the context of the recovery of global economy, industrial revolution 4.0, the growing trend of global integration, many researches and practical experiences showed that the economy heavily depended on cheap labor and natural resources is obsolete. Instead, technological sciences, knowledge and creativity are now the important factors. These require Vietnam to continue its reform effort.
In order to improve competitiveness, the Vietnamese government has issued Resolutions 19 and 35 with effort to improve business environment. These reforms have been acknowledged through better evaluation from international organizations such as World Bank or Moody’s.
Vietnam is entering the 3rd year in the 5-year plan of social-economic development from 2016 – 2020, with the overall objective of ensuring stable macro economy, striving for a higher economic growth than the previous year. Along with these targets is the effort to facilitate strong administrative reform. In order to become trusted partner for the business community development in the coming time, the government will focus on the following priorities:
Firstly, to focus on improving infrastructure, creating smart and efficient connections, reducing transaction fees, improving the enterprises competitiveness, investors and the economy. Especially, the government encourages a stronger investment in education, sciences and technologies, human resources, which are driving forces for growth.
Secondly, the government is aimed to maintain stable social and macro economy. According to the Prime Minster, this is an important competitive factor in the context of global uncertainties. The government will push forward with economic reform and development of private sector, financial and banking services, reducing the number of non-performing loans to reduce the burden of debt on enterprises, enhancing social welfare.
And thirdly, the government will improve institutional aspects and the law system toward transparency, integrity and efficiency.
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