Vietnam’s 2014 GDP growth seen above 5.8 percent

Vietnam’s economy is expected to grow faster than its 5.8 percent target this year, accelerating from last year thanks to steady growth in exports, the government said on Tuesday.
Growth this year could be more than 5.9 percent, while inflation could stay below 3 percent, Prime Minister Nguyen Tan Dung told the annual Vietnam Business Forum, revising his estimate from “above 5.8 percent” mentioned earlier in a government statement.
Stable growth is crucial to the export-driven economy as the government is in final talks on multiple trade deals and has been pushing for reforms to erase bad debt and remove hurdles that have been curbing expansion.
“Vietnam has grown to achieve quite comprehensive results in various areas, including in the economy, society and politics, but the achievements are yet to match with potential and have not reached our own requirements,” Dung said.
Beijing’s decision to move an oil rig into waters claimed by Hanoi in May had hurt the country’s economic performance, he said. Earlier, economists said the conflict could erode the country’s growth by 1 percent due to strained political and trade ties with China.
Vietnam’s economy grew 5.42 percent in 2013, quickening from 5.25 percent in 2012. The government has targeted growth of 6.2 percent in 2015.
A free trade agreement with the European Union, with which Vietnam shared 24.2 billion euro ($30.16 billion) in trade last year, may be signed in early 2015, Dung said.
He said a trade deal with South Korea, Vietnam’s top foreign investor, will be signed in coming days, and that Vietnam will also aim to sign a trade agreement with Russia, Belarus and Kazakhstan in early 2015.
Vietnam also has been in talks with 11 other fellow countries in the U.S.-led Trans-Pacific Partnership that will form a huge free-trade bloc from Chile to Japan and is expected to elevate the competitiveness of the Southeast Asian country over China.
Vietnam’s government has projected exports in 2015 to rise 10 percent, near this year’s growth projected at 12 percent.
Economic growth is also being driven by bank credit, and banks have been stepping up clearing bad debts in order to bring toxic loans to 3.7-4.2 percent of the total loans by the end of 2014, from 17 percent in September 2012.
Loans by banks in Vietnam are expected to rise 13 percent this year, in line with an annual target of between 12-14 percent, the statement quoted central bank governor Nguyen Van Binh as saying at a cabinet meeting on Monday.
“Vietnam has seriously acknowledged that there are many limits, we have to do more and more aggressively and effectively to grow fast and stable,” Dung said.
Source : Thanh Nien Daily | December 2, 2014
Thomas D’Innocenzi

About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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