Economy sees positive prospects

In 2013, the economy started its recovery course. GDP picked up 5.4%. Inflation was put under control and expanded by 6.02% against 2012. Trade increased over 14.4% while trade deficit dropped to about US$ 0.4 billion. Inventory of the industry and processing was only 9.4% in 2013 compared to 21.5% in 2012.

Especially, nearly 11,800 domestic enterprises temporarily suspending activities resumed operation. The FDI sector maintained a high growth rate and registered almost US$ 20.8 billion in capital, up 54% against 2012. Liquidity of commercial banks was more stable than the previous year. The financial and real estate markets were developing on the right track.

Domestic enterprises are expected to enjoy numerous business opportunities thanks to the ongoing fiscal policies undertaken by the Government, said Dr. Le Xuan Nghia, Director of the Business Development Research Institute.

So far a third of non-performing loans has been resolved, paving a favorable way for the healthy relations between enterprises and commercial banks. In addition, the policies on interest rate cuts have opened up more chances for enterprises to access capital inflows and expand operation, according to Dr. Nghia.

Viet Nam, said Mr. Sandeep Mahajan, the World Bank's Lead Economist for Viet Nam, is enjoying export advantages. The country has also improved its performance in the global economic rankings. Labor advantages also help the country in investment.

In addition, the World Trade Organization forecast that the world economic growth will accelerate and may even reach the 4% level in 2014 from 2.5% in 2013. The FDI inflow would touch around US$ 1.6 trillion and is likely shifting to Asia.

A large number of economists held that this is the right time for domestic enterprises to pursue restructuring and speed up market integration.

To generate impetus for the economy, the policy on business restructuring especially among SOEs plays a leading role in the economic restructuring process in Viet Nam, Dr. Tran Du Lich, Vice Chief of the Ho Chi Minh City National Assembly delegation.

Dr. Le Xuan Nghia added that the SOEs reform would send a clear message to foreign investors that Viet Nam has practically transformed the domestic economic institutions.

Experts also predicted that sectors which heavily suffered from the economic crisis would early recover and attract foreign players, including garments and textiles, footwear, furniture, building materials and telecom.

(Source: News.chinhphu.vn)