Hanoi Times - Will Vietnam economy which known as an "emerging economy", "new star" continue to tell its miraculous story as in the past years? In these days, there comes bad news from the economy. In the domestic market, inflation and gold price are on the rise. In contrast, the economic growth and stock market plunge. Besides, the world market is being staggered by the American financial crisis and the increasing prices of food and crude oil. All these have portrayed an overall and vivid picture of the economy. In fact, the difficulties facing Vietnamese economy in the first 4 months can be understandable when Vietnam intensively integrates into the regional and international market. Moreover, it is also a good chance for us to restructure the ineffective economic sectors which are not competent enough to compete in both domestic and international markets. Regarding the reasons of economic turmoil in the first 4 months of 2008, the Party's Politburo put the blame on the … [Read more...] about A contemplation of Vietnam economy in “price storm”
Experts: Vietnam economy lags and grows rudderless Hoang Phi By Hoang Phi - The Saigon Times Daily HCMC –Vietnam’s economy has remained on a growth trajectory but it has begun lagging behind other countries, according to a seminar in HCMC on Tuesday. At a seminar on Vietnam’s independence in international economic integration on Tuesday, Tran Dinh Thien, director of the Vietnam Institute of Economics, said the country’s World Trade Organization membership has entered its sixth year but State-owned and private enterprises are now in worse shape. Integration has helped fuel economic growth in Vietnam but the nation’s position has yet to pick up as it is still processing and assembling products, and exploiting natural resources without using modern technologies. That’s why Vietnam’s economic growth sustainability is low, with the country’s economy failing to compete on international markets, Thien noted. Internal forces have been … [Read more...] about Experts: Vietnam economy lags and grows rudderless
The Asian Development Bank (ADB) on Sep. 15 approved a five-year US$500 million loan to Vietnam to help the economy counter the adverse impacts of the global economic downturn. The lender said in a statement issued the same day that the loan from its Countercyclical Support Facility will provide budgetary support for the country to finance critical public expenditure programs in 2009 and 2010. The announcement wrote, "Vietnam has been severely affected by the global economic downturn brought about by the slump in foreign direct investment, exports, and remittances." Economic growth is projected between 4% and 5% in 2009, a marked slowdown from an average of 7.6% in the past 4 years. Economic growth below 5% could lead to higher unemployment and under-employment among the young labor force, the statement wrote. "The loan will allow the Government to meet its financing needs and support economic growth in a fiscally responsible way during a challenging period for the global economy," … [Read more...] about ADB agrees $500 mln loan to bolster Vietnam economy
How is the Vietnam economy in the 2009-2010 period? What are the economy's impacts on local firms? These were questions discussed at a conference entitled "Prospect of Vietnamese economy and challenges faced by local businesses between 2009 and 2010" recently held by Business Forum Newspaper under the Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam Institute of Economics in Hanoi. Impacts Dr. Dang Xuan Thanh from the Institute of World Economics and Politics, said the world economic crisis have lasted 18 months and seriously influenced Vietnamese economy in medium and long term. The country has seen a sharp fall in economic growth, export turnover, foreign direct investment, tourist number and revenues and labor export. He added that, in the long run, Vietnam may cope with high risks of inflation, a low FDI inflow, slow recovery of global trade tiers and more fierce trade competition. According to Dr. Vo Tri Thanh, Deputy Head of Central Institute for Economic … [Read more...] about Which Prospect for Vietnam Economy in 2009-2010 Period?
Vietnam economy has much left to do : HSBC By Thanh Thuong - The Saigon Times Daily HCMC –Vietnam may have overcome the worst period but there is still plenty left to do, said HSBC in its latest report on Vietnam’s economic outlook. In the report released on Tuesday, HSBC noted the world is transfixed on the eurozone, with low expectations that European leaders will figure out concrete solutions to completely solve the crisis. Meanwhile in Vietnam, it is hoped that the slowing of growth could be a catalyst for the country to get rid of the burden on the economy. The main issue in Vietnam is that the State corporate sector is still predominating over the economy, accounting for some 40% of GDP. The State sector utilizes capital in the least efficient way but makes up the majority of total investment in Vietnam, said HSBC. The average credit growth in the past ten years exceeded 30%, fuelling demand and exuberant investment. However, the return of high inflation in 2011 put … [Read more...] about Vietnam economy has much left to do : HSBC