Vietnam's growth compatible with targets

News Desk in Hanoi/Viet Nam News
Asia News Network

Hanoi (Viet Nam News/ANN) - Enhancing macro-economic stability with lower inflation and higher growth remains the focus of this year's socio-economic development tasks, says the Ministry of Planning and Investment.

At a press conference in Ha Noi yesterday, the ministry reported that last year saw improvements in the macro-economy with inflation under control, gross domestic product growth maintained at a reasonable 5.25 per cent (if the base year was 2010), and social security and welfare ensured.

The budget overspending rate was reduced to 4.8 per cent of GDP last year, compared to 4.9 per cent in 2011.

Although some of last year's economic indicators failed to meet goals, including GDP growth and the index of industrial production, the economic growth rate was compatible with the nation's target to stabilise the macro-economy and curb inflation, the ministry said.

This year, the nation's gross domestic product growth rate was expected to be 5.5 per cent and the consumer price index 6 per cent, while export turnover was tipped to increase by 10 per cent.

Budget overspending was expected to be below 4.8 per cent of GDP and the total investment for social development would be around 30 per cent of GDP.

Removing difficulties and promoting business and production would be among other measure to achieve the goals.

Results of the ministry's survey showed the nation's structural shift in economy towards the service sector, with units operating in the sector increasing by 31.6 per cent in quantity and 40.4 per cent in labour compared to the survey in 2007.

FDI more efficient

Viet Nam would complete legal frameworks and policies to improve the country's investment environment and attract more foreign direct investment while enhancing management of FDI flows to improve its efficiency, Minister Bui Quang Vinh said.

The ministry's statistics showed that as of December 15 last year there were 98 countries and territories investing in Viet Nam with 14,489 valid projects and total registered capital reaching $213.6 billion.

Last year alone, the total registered capital hit $13.01 billion, equal to 84.7 per cent of the previous year while disbursed capital was $10.46 billion, equal to 95.1 per cent of the 2011 figure.

Japan was the biggest investor in Viet Nam with the country's registered capital in Viet Nam accounting for 13.6 per cent of the total figure, followed by Taiwan, Korea and Singapore.

The FDI sector's exports (including crude oil) was $73.4 billion, accounting for 64 per cent of the country's total export turnover.

Last year, Viet Nam ran a trade surplus of $284 million, equal to 0.2 per cent of total import-export turnover.

According to the General Statistics Office, the trade surplus reflected that domestic enterprises were in difficulty with decreasing demand of imports while exports of the foreign direct investment sector saw increases, which indicated this would continue to affect economic growth in coming years.

The ministry said foreign investment into the country was not expected to recover strongly for several years, and estimated the FDI registered capital this year would be around $13-14 billion and the disbursed capital would be $10-11 billion this year.