Rice is packaged at the privately-owned Co May Company in Dong Thap province. The private sector has been driving force for growth in the first three quarters. (Photo: VNA)Hanoi (VNS/VNA) - The private sector was the main driver of growthfor Vietnam in the first nine months this year, a conference held by theCentral Institute for Economic Management (CIEM) heard in Hanoi on October 30.
CIEM also shared a report it jointly conducted with an Australian programme tosupport Vietnam's economic reform (Aus4.Reform Program) at the conference, thatstated economic growth in Q3 and the first nine months maintained at arelatively high level.
While the macro-economy remained stable, the report said local industrialindustries had grown rapidly with the largest contributor to GDP being theprocessing industry. Imports and exports also kept up their momentum with atrade surplus in the first nine months estimated at 7.1 billion USD, exceedingthe same period in 2018, said the report.
Regarding the imports and exports, the contribution of FDI enterprises hadslowed while the private sector had become the main driving force of growth.
Nguyen Anh Duong, head of CIEM’s General Research, said: "The FDI sectorhas slowed with export growth of 5 percent, or one digit growth, while theprivate sector reported export growth of two digits.”
Duong told the conference that growth of the private sector was “veryimpressive” in the context that many domestic private enterprises were notreceiving enough support.
Duong added that uncertainties caused by the trade war between the US and Chinaaffected a lot of foreign-invested enterprises but was “an opportunity fordomestic private enterprises”.
Duong said local private enterprises had taken opportunities offered byintegration with their adaptability, urging relevant agencies and policymakersto support and create more favourable conditions for them.
However, the conference also pointed out challenges for the local economy,mentioning the "return" of the mining industry, which was considereda threat to the environment and of low value.
The report said after three years of negative growth, the mining industry hadreturned to positive growth in the first nine months of this year.
At the same time, participants mentioned the quality of growth was not meetingexisting potential.
CIEM’s former director Nguyen Dinh Cung, who is also a member of the PrimeMinister's Economic Advisory Group, warned: "In FDI investment, the numberof projects increased by 26 percent but the amount of registered capitaldecreased by 14.5 percent.” Thus, Cung doubted the quality of some FDI projectsand whether they contributed to local development.
To overcome challenges, a CIEM representative suggested continuing to reformmacro-economic fundamentals, improving the business environment, and creatingnew drivers for development with more support for private businesses.
In addition, CIEM asked the Government to monitor the exchange rate carefully,adding that the relevant agencies should pay more attention to credit qualitynot quantity.
Based on the report, economists predicted GDP growth of 7.02 percent for thisyear and 6.72 percent for 2020./.
CIEM also shared a report it jointly conducted with an Australian programme tosupport Vietnam's economic reform (Aus4.Reform Program) at the conference, thatstated economic growth in Q3 and the first nine months maintained at arelatively high level.
While the macro-economy remained stable, the report said local industrialindustries had grown rapidly with the largest contributor to GDP being theprocessing industry. Imports and exports also kept up their momentum with atrade surplus in the first nine months estimated at 7.1 billion USD, exceedingthe same period in 2018, said the report.
Regarding the imports and exports, the contribution of FDI enterprises hadslowed while the private sector had become the main driving force of growth.
Nguyen Anh Duong, head of CIEM’s General Research, said: "The FDI sectorhas slowed with export growth of 5 percent, or one digit growth, while theprivate sector reported export growth of two digits.”
Duong told the conference that growth of the private sector was “veryimpressive” in the context that many domestic private enterprises were notreceiving enough support.
Duong added that uncertainties caused by the trade war between the US and Chinaaffected a lot of foreign-invested enterprises but was “an opportunity fordomestic private enterprises”.
Duong said local private enterprises had taken opportunities offered byintegration with their adaptability, urging relevant agencies and policymakersto support and create more favourable conditions for them.
However, the conference also pointed out challenges for the local economy,mentioning the "return" of the mining industry, which was considereda threat to the environment and of low value.
The report said after three years of negative growth, the mining industry hadreturned to positive growth in the first nine months of this year.
At the same time, participants mentioned the quality of growth was not meetingexisting potential.
CIEM’s former director Nguyen Dinh Cung, who is also a member of the PrimeMinister's Economic Advisory Group, warned: "In FDI investment, the numberof projects increased by 26 percent but the amount of registered capitaldecreased by 14.5 percent.” Thus, Cung doubted the quality of some FDI projectsand whether they contributed to local development.
To overcome challenges, a CIEM representative suggested continuing to reformmacro-economic fundamentals, improving the business environment, and creatingnew drivers for development with more support for private businesses.
In addition, CIEM asked the Government to monitor the exchange rate carefully,adding that the relevant agencies should pay more attention to credit qualitynot quantity.
Based on the report, economists predicted GDP growth of 7.02 percent for thisyear and 6.72 percent for 2020./.
VNA
