Vietnam's economic optimism entering 2014

The recent global economic depression had prompted concerns Vietnam and particularly the Mekong Delta region would continue to suffer.

But the region, an aquaculture hub, is seeing positive signs, with January seafood output estimated at 399,000 tonnes. The improvement represents a 0.8% rise in quantity and an almost 14% rise in value compared to a year earlier.

Tien Giang-based Go Dang Seafood Joint Stock Company's new factory entered into operation near the start of 2014, part of its plans to explore emerging markets.

The company's General Director Nguyen Van Dao says gradual economic recoveries in Japan, the US, and Europe are a boon to Vietnamese exporters. New markets in the Middle East have also started importing more products.

The new factory, with a daily capacity of 1,200 tonnes, will hopefully double Go Dang company's 2013 export value to around US$50-60 million.

At the beginning of 2014, Tien Giang's industrial zones added six new foreign direct investment (FDI) projects. The province's 43 total FDI projects are worth more than US$1.4 billion.

The new year also marked the introduction of a number of macroeconomic stimulus policies such as tax exemptions, interest rate stabilisation, the relaxation of financial and credit conditions, and the acceleration of public investment capital. .

Vo Thanh That, Personnel Department Head for the Korean company Hansea, says the company has asked authorities to reserve an additional 20 hectares for expanding its Tien Giang factory. Hansea will also increase its local labour force from its current 3,300 workers to 13,000 by 2015.

Twenty Vietnamese commodity categories earned export revenues above US$1 billion each in 2013. The garment and footwear sector reports it has already received substantial orders for the first and second quarters of this year.

New economic driving forces will arrive in the form of the imminent Trans-Pacific Partnership Agreement, the Free Trade Agreement with the Customs Union of Russia-Belarus-Kazakhstan, and the Free Trade Agreement between Vietnam and the EU.

Economists say increasing trade and consumer demand have landed Vietnam among the 25 countries with highest growth.

The Government's economic management strategy-focused on restructuring, balancing supply and demand, and improving efficiency and productivity-will lay firm foundations for further development in 2014.

(Source: VOV News)