Vietnam’s economy is estimated to grow 6.7% to 6.8% this year, lifted in part by free trade agreements (FTAs), according to the National Financial Supervisory Commission (NFSC).
The commission is basing growth projections on expectations of higher global economic growth, a sustainable domestic macro-economy, and opportunities from the Trans-Pacific Partnership Agreement, to which Vietnam is a signatory.
In addition, measures to restructure the banking system and deal with bad debt will help strengthen the financial system and increase the credit supply for private sector, according to a new report by the state-run VGP News.
New laws and measures designed to further improve the business environment will likewise help promote the expansion of the economy.
As for exports, these are seen to accelerate in 2016 compared to 2015. NFSC said the forecast is founded on the number of FTAs taking effect this year, and the expanding markets for such key commodities as garments, footwear, and agricultural, forestry, and aquatic products.
Exports fail to meet targets
Expectations have mounted even as the country’s export revenues in 2015 fell short of expectations due to a sharp drop in oil prices.
According to a report by the Ministry of Planning and Investment, export turnover for the year was estimated at US$162.44 billion, which is an increase of 8.1% year-over-year, lower than the government target of 10%.
Vietnam is estimated to have lost over $3 billion from falling oil prices, said Minister of Industry and Trade Vu Huy Hoang.
The trade deficit stands at $3.17 billion, accounting for 2% of total export turnover, much lower than the set band of 5%.
Hoang said the target export growth for this year is 10%, which he said is possible owing to the series of free trade agreements the country has inked.
Photo: Truth’soutthere
