09:24 | 09/03/2016 Economy- Society
(VEN) - The Central Institute for Economic Management (CIEM) recently announced the results of the Vietnamese economy in 2015 and its prospects for 2016. The report emphasizes that the 6.7 percent gross domestic product (GDP) growth target set for 2016 is realizable, and that international economic integration will bring Vietnam big opportunities this year.
The industrial sector continued to achieve the highest growth rate compared with other sectors in 2015
The report considers 2015-2016 as a transitional period between two five-year plans for socioeconomic development: the plan for the 2011-2015 period focusing on measures to maintain macroeconomic stability and promote recovery, and the plan for the 2016-2020 period focusing on microeconomic reforms and development.
The report highlights successful results during 2015: the economy grew on a quarterly basis and the growth in each quarter was higher compared with the same periods in 2014, although lower compared with the 1990-2010 period; the industrial sector continued to achieve the highest growth rate compared with other sectors; the trust of investors and businesses in the economy improved, and foreign investors showed greater optimism about the business environment in Vietnam.
The report forecasts that in 2016 Vietnam could achieve a GDP growth of 6.82 percent, curb the inflation rate at 4.37 percent, and increase exports by 10.4 percent. Microeconomic reforms and economic restructuring efforts will continue and are expected to have a greater impact on GDP growth in the second half of 2016. Investment in development is predicted to continue growing. Private sector and foreign direct investments are expected to strongly increase. Public investment is also predicted to increase. The interaction between international economic integration and domestic reforms should bring the Vietnamese economy even bigger opportunities.
To make the most of opportunities, the report indicates that it is necessary to continue maintaining macroeconomic stability via reducing the governance of fiscal policies and consider inflation stabilization as the top priority of monetary policies. In addition, it is necessary to prepare for the implementation of free trade agreements, focusing on domestic reforms. Further efforts to improve the business environment are required. It is also necessary to improve business awareness about fair competition and reduce the public sector’s dominance over the private sector.