Illustrative image (Photo: VNA)Hanoi (VNA) – TheUS magazine Forbes said Vietnam can meet its target of 6.7 percent GDP growthin 2017 thanks to five engines, including its resources and trade agreementswith other nations.
The magazine cited OscarMussons, international business advisory associate with the DezanShira&Associates consultancy in Ho Chi Minh City, as saying that firstly,Vietnam keeps giving foreign companies reasons to invest thanks to its lowertariffs under the trade deals and clear rules on foreign investment.
In 2017, Vietnam willstart to “collect the fruits of having a more structured and competitivebusiness legislation, which is having an impact on attracting more FDI and alsohelping Vietnam become one of the major manufacturing hubs in the world,” hesaid.
Secondly, Vietnamese aregetting richer and spending more, the magazine said, noting that the country’s middleclass will double by 2020 to 33 million people. Wages are rising along with aboom in jobs linked to growth in export manufacturing.
Meanwhile, factory workis moving up in value from traditional industries. Electronics are replacingtraditional industries such as garments and shoes. High-tech’s share of totalexports from Vietnam reached 25 percent in 2015 from 5 percent in 2010 and keptgoing last year with no signs of abating now.
The fourth factor is privatebusiness, which is expanding, particularly in garment and textile and export-orientedproduction. A boom is seen in beer and startups in media, entertainment and online payments. Thelocalised venture capital funds also gave startups better access to funding.
Finally, Vietnam alreadytakes part in 16 free trade agreements (FTA), including those with economicpowerhouses such as China and Japan. The country is also on the list to join aChinese-championed Regional Comprehensive Economic Partnership trading groupthat would encompass 30 percent of the world’s GDP.
Statistics of the VietnamGeneral Statistics Office showed the national economy expanded around 6.21percent in 2016. The figure is expected to hit 6.7 percent in 2017. -VNA
VNA
