VGP – Comprehensive
achievements in 2018 and Government’s ongoing efforts are among the key driving
force for Viet Nam to achieve high and sustainable growth in the coming years.
Telling numbers in
economy expanded 7.08% in 2018, the highest rate over the past decade, mainly
fueled by strong growth of manufacturing and processing (13%) while
agriculture-forestry-aquaculture posted seven-year high growth of 3.76% with
export turnover surpassing US$40 billion.
Despite a “stormy”
year on the global market, total import-export volume reached US$482 billion in
an impressive way, sending the trade surplus to US$7.2 billion for the first
The exchange rate
remained stable and foreign exchange reserves rose to unprecendented high of
US$65 billion, equivalent to 15 weeks of imports.
In addition, credit
growth began to slow down, increasing 14% in 2018 while real budget revenues
outstripped the preset goal by a wide margin of US$3.5 billion.
Impetuses for 2019
One of the key
driving forces may come from the Government’s determination to maintain credit
growth at lower pace compared to previous years, which has sent a strong
message to domestic and foreign investors that the Government is keen to ensure
a sustainable business environment for long-term growth.
Viet Nam is shifting
to quality growth based on higher productivity and technologies and the economy
may expand above 7% in 2019, according to Dr. Le Xuan Nghia, Director of the
Business Development Institute.
The country has
emerged as an attractive destination for foreign investment, partly evidenced by
record high of disbursement rate (9.1%) or US$19.1 billion last year. Many Asian
business giants are considering pivoting to emerging economies, including Viet
Nam, according to Dr. Nguyen Xuan Thanh from Ho Chi Minh City-based Fulbright
School of Public Policy and Management.
Thanh added this is a
good opportunity for Viet Nam if the country could maintain macroeconomic
Other driving forces
may also come from soaring domestic purchasing power thanks to increasingly high
GDP per capita as well as the Government’s endeavors to boost innovation,