ADB upbeat about Vietnam’s economic growth
“Those who have expected miracles from Vietnam’s WTO accession may feel differently, but the country indeed has been making good progress in its economic development and reform,” said Ayumi Konishi, ADB Country Director to Vietnam. “Buoyant investment and consumption drove robust economic growth in the first half of this year.”
According to the Asian Development Outlook 2007 (ADO) Update, Vietnam’s economic growth in the January-June period stood at 7.9 percent, which was 0.5 percent higher than the figure of the corresponding period last year. As GDP usually picks up in the second half of the year thanks to accelerated budget disbursement, economic growth for 2007 is forecast to be 8.3 percent, unchanged from the ADO 2007 projection.
ADO attributed Vietnam’s impressive growth in the past months to the rapid development of the industry and service sectors, and particularly the private economic sector, which achieved a growth rate of 20.5 percent, more than double the pace of the State enterprise sector.
Gem Lao-Araya, head of the finance governance division said Vietnam’s WTO membership will help the national economy further integrate into global business networks, encourage foreign direct investment and maintain the momentum for domestic reform.
ADB statistics also showed that the inflation rate has increased slightly in recent years, standing at 8.3 percent in 2005, 7.5 percent in 2006 and 7.3 percent in the first eight months in 2007.
Dao Viet Dzung, an ADB management and economics officer said that despite the high inflation rate, it has not sounded alarm bells. He quoted the bank as saying Vietnam’s inflation rate is projected at 7.8 percent in 2007 and down to 6.8 percent in 2008.
However, ADB Country Director to Vietnam Ayumi Konishi warned that the increasing inflation requires the careful attention of the Government.
“What is most important for Vietnam continues to be the acceleration of reforms and faster implementation of development projects through simplification of procedures.” (VOV)
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