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Growth drivers

Vietnam to see slower growth in 2019: forecasts

January 3, 2019 by vnexpress Leave a Comment

Fitch Solutions, an arm of Fitch Ratings, said in a report released Wednesday it expects Vietnam’s GDP growth to slow to 6.5 percent in 2019 in line with a wider trend of slowing global growth, but added the country would remain one of the fastest growing economies in Southeast Asia. The economy grew by 7.1 percent last year, the fastest rate of expansion in 11 years, according to official data. This was well above the 6.5-6.7 percent target set by the National Assembly. "Its increasing openness and reliance on foreign investment suggests that it is unlikely to be spared from the global growth slowdown arising from rising trade protectionism and tighter financial conditions. "Although we believe that Vietnam’s manufacturing sector and economy will continue to outperform the region over the coming quarters, growth is likely to face headwinds stemming from rising global trade disruptions and tightening financial conditions, which will negatively impact global economic growth … [Read more...] about Vietnam to see slower growth in 2019: forecasts

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Standard Chartered lowers growth forecast for Malaysia

September 5, 2018 by vietnamplus Leave a Comment

A view of Kuala Lumpur capital city of Malaysia (Photo: AFP) Kuala Lumpur (VNA) - Malaysia could be one of the three countries in Asia which are the most negatively affected by the trade war between the US and China if the dispute continue to worsen, according to Standard Chartered. Edward Lee, the bank’s chief economist for the Association of Southeast Asian Nations (ASEAN) and South Asia, warned that the trade dispute between the US and China could further weaken Malaysia’s economic performance, which has already been moderating in recent times. According to the economist, Malaysia’s gross domestic product (GDP) grew weaker than expected at 4.9 percent in the first half of 2018 due to supply-side disruptions, apart from the technical “high base” effect. If the US goes ahead with the 25 percent tariff on the next 200 billion USD worth of Chinese imports plus the previous 25 percent on 50 billion USD worth of imports from China, the potential impact on … [Read more...] about Standard Chartered lowers growth forecast for Malaysia

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PM asks Tien Giang to boost growth based on farming, tourism, logistics

August 9, 2018 by vietnamplus Leave a Comment

(Photo: VNA) Tien Giang (VNA) – Prime Minister Nguyen Xuan Phuc recommended the Mekong Delta province of Tien Giang develop its economy based on agriculture, tourism and logistics at a meeting with local authorities on August 9. At the working session, PM Phuc suggested Tien Giang steer its growth along applying technologies in farming and making clean fruit part of the high-end segment in the market, and carrying out research to turn the local Xoai Rap deep-water port into a logistics centre serving the demand in the region. He also pointed to farm produce processing and eco-tourism as other key growth drivers. Lauding the province’s economic achievements, Phuc said Tien Giang, together with Long An, Can Tho and Kien Giang, has favourable conditions to thrive in the delta. Tien Giang is reported to grow 8 percent on average in the past two years. It now accounts for 9.2 percent of the Mekong Delta’s gross regional domestic product and 1.5 percent of the … [Read more...] about PM asks Tien Giang to boost growth based on farming, tourism, logistics

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Growth drivers need to be upheld: PM

July 31, 2018 by vietnamnews Leave a Comment

Driving forces for Viet Nam’s economic growth need to be maintained not only in 2018, but beyond, Prime Minister Nguyễn Xuân Phúc said at a Government meeting yesterday. — VNA/VNS Thống Nhất HÀ NỘI – Driving forces for Viet Nam’s economic growth need to be maintained not only in 2018, but beyond, Prime Minister Nguyễn Xuân Phúc said at a Government meeting yesterday. “We should continue working to create market confidence and win trust of enterprises so as to branch out business and production”, he stressed. Regarding the country’s socio-economic development, PM Phúc noted that four macroeconomic targets have been ensured, including sound growth of gross domestic production (GDP), price stability, reduction of unemployment rate and net export turnover. The nation’s unemployment index fell 2.2 per cent for the first time. Thanks to institutional reform, the … [Read more...] about Growth drivers need to be upheld: PM

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Vietnam targets sustainable growth

July 3, 2018 by ven Leave a Comment

(VEN) - Despite positive results in 2017 and the beginning months of 2018, Vietnam’s economic performance requires a concerted effort by the government, ministries, departments and localities to achieve sustainable growth. Impressive results Gross domestic product (GDP) growth in the first quarter of 2018 reached 7.38 percent, the highest growth rate for the first quarter over the past decade. The industry and construction sectors posted a 9.7 percent growth rate, with the manufacturing and processing industry contributing a 13.6 percent growth to this surge. The agro-forestry-fishery sector increased by 4.05 percent, while the service industry climbed 6.7 percent in the January-March period. Foreign direct investment (FDI) projects in Vietnam disbursed US$5.1 billion during the first four months, a year-on-year increase of 6.3 percent. Trade value reached US$144.13 billion for the first four months of the year, a year-on-year rise of 14.4 percent, with exports accounting … [Read more...] about Vietnam targets sustainable growth

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Economic growth projected at 6.85% in 2018-2020

April 23, 2018 by thesaigontimes Leave a Comment

Economic growth projected at 6.85% in 2018-2020 Vu Viet Ngoan, head of the Prime Minister’s economic advisory team, speaks at a meeting with PM Nguyen Xuan Phuc in Hanoi last week - PHOTO: VGP HCMC – The Prime Minister’s economic advisory team has projected average economic growth at 6.85% between now and 2020. Speaking at a meeting between the Prime Minister and members of the team on April 20, Vu Viet Ngoan, head of the advisory group, said reform efforts and drastic measures had helped significantly improve the investment and business environment. The policy that recognizes the private sector as a major driving force of economic development have paid off, he noted. According to experts in the advisory team, it is hard to maintain the current growth momentum. Creating new growth drivers and promoting labor productivity should be seen as a vital way to boost growth, improve the quality of growth, achieve sustainable development, attain the five-year growth … [Read more...] about Economic growth projected at 6.85% in 2018-2020

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As economic growth ebbs, Vietnam needs boost in productivity

January 10, 2018 by robert Leave a Comment

NDO - Although Vietnam’s economy has enjoyed relatively robust growth in the past ten years, the pace is slowing down as a result of modest rises in labour productivity, which requires greater improvement if the country is to sustain its rapid growth in the future. ChallengesDuring the two decades previous to 2012, Vietnam posted impressive economic growth of more or less 7% thanks to moderate gains in labour productivity of more than 4% annually, coupled with an expanding workforce, the direct result of a young population.But as productivity growth slowed to 3.8% in 2013, economic growth consequently slackened off to 5.4%, before picking up to 6.8% last year after labour productivity growth bounced back to 5.9%.Head of the Central Institute of Economic Management Nguyen Dinh Cung stated that these figures reflect the ever increasing role of labour productivity in the expansion of the Vietnamese economy, which he says contributed about 89% to Vietnam's GDP growth last year.In … [Read more...] about As economic growth ebbs, Vietnam needs boost in productivity

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Laos’ economic growth may reach 7 percent in 2018: expert

January 5, 2018 by robert Leave a Comment

A street in Vientiane (Source: alamy.com) Hanoi (VNA) - Laos could reachan economic growth of 7 percent in 2018, but needs to speed up mega projects, aLao economist has said.According to the Xinhua news agency of China, Leeber Leebouapao from theNational Economic Research Institute told Vientiane Times that the furtherprogress of mega projects would serve as the main driver for economic growthamid the government's revenue shortfall.Among the mega projects are the China-Laos railway,the Xayaboury hydropower project, development of special economic zones andother projects associated with the China-proposed Belt and Road Initiative, he said."If these mega projects progress as planned, we can maintain economicgrowth at 7 percent in 2018. Construction of several hydropower projects willbegin this year while others will be completed and become operational. Theseprojects will be key to economic growth," Leeber said.During the government's monthlymeeting last month, Lao Prime Minister … [Read more...] about Laos’ economic growth may reach 7 percent in 2018: expert

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FDI – Economic Growth Driver of Vinh Phuc Province

January 5, 2018 by robert Leave a Comment

Vinh Phuc province was re-established on January 1, 1997. At that time when the province embarked on building an independent administrative system with a lot of hardships like a small natural area - mainly midland and mountains, a big population, poor mineral resources, agriculture-based economy, undeveloped industry and service, a few enterprises using backward technologies and having low economic performance, weak infrastructure (six communes had no access to electricity; a third of provincial roads met standards, only 10 km of district roads were asphalted, etc.) However, with its dynamic and creative attitude to investment attraction, Vinh Phuc province has basically become a modern industrial province with many socioeconomic indicators ranked high in the country. And, Vinh Phuc has become a prime example of success in attracting many world-leading corporations to locate their projects in the province like Toyota, Honda (Japan), Piaggio (Italy) and many other big investors from … [Read more...] about FDI – Economic Growth Driver of Vinh Phuc Province

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Credit growth projected at 18 pct in 2018

January 5, 2018 by robert Leave a Comment

According to VCBS, the major driver will come from the scale of an expanding economy, which will lead to greater consumption demand. The demand for individual loans, mainly consumer ones, will continue to increase sharply. Total consumer outstanding loans as of the end of November 2017 were estimated to increase some 59 percent compared with the end of 2016.In the first half of 2018, VCBS said deposit rates will be maintained thanks to many supporting factors, such as stable exchange rate, tightly controlled inflation and positive changes in the bad debt settlement process.However, it also forecast that the pressure on increased deposit rates will return in the second half of the year. Specifically, in 2018, the US Fed may raise interest rate by 3-4 times, thereby putting pressure on the interest rate in Vietnamese dong.Besides this, the second half of the year will be also the time when banks strengthen credit operation with the loan to deposit ratio of the system rather high at 86.75 … [Read more...] about Credit growth projected at 18 pct in 2018

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