Vietnam’s economy grew at a fast pace in the first half of 2018 compared to the previous years, but there are indications that it is losing momentum – a problem not only in the last half of the year but also in 2019 and 2020.
Containers are loaded at Tan Vu Port of Hai Phong Port in Hai Phong city (Photo: VNA).
The remark was made by Dang Duc Anh, head of the analysis and
forecast section of the National Centre for Socio-economic Information and
Forecast (NCIF), at a discussion in Hanoi on August 8.
The growth rate reached 7.45 percent in the first quarter and
6.79 percent in the second quarter, but it is predicted to slow down to 6.72
percent during July-September and 6.56 percent in the last three months.
Meanwhile, average inflation is likely to be around 4 – 4.2 percent, according
to the NCIF.
Despite the 7.08-percent growth in the first six months,
there are many challenges during the rest of the year, including pressure from
the appreciation of the US dollar due to the possibility that the US Federal
Reserve could hike interest rates twice from now to the year’s end.
Resources for economic growth in the coming months are
unclear while the processing and manufacturing industry – a major driving force
– is depending on FDI firms and still at a low level in value chains. The
driving force from the FDI sector, which is becoming saturated in Vietnam, is
also reducing. Additionally, effects of business climate improvement policies
haven’t been clearly seen, he added.
Other challenges include impacts of the US-China trade war.
Echoing his view, other experts said the US-China trade
tension could lead to a domino effect on Vietnam’s economy.
Tran Toan Thang, head of the NCIF’s world economy section,
said the trade war, geopolitical risks and the US’s taxation policy reforms will
affect investment decision of multi-national American companies. The reduction
of corporate income tax in the US may also trigger a wave of tax cut or more
investment incentives in some countries to keep US businesses, which could
impact the competitiveness of Vietnam’s investment environment.
To maintain the growth momentum for the coming time, Vietnam
should create a more transparent investment climate, improve technological
capacity to attract more FDI companies, and actively respond to the US-China trade
war’s impacts and exchange rate changes.
Meanwhile, Luu Bich Ho, former Director of the Vietnam
Institute for Development Strategies at the Ministry of Planning and
Investment, said the country needs to press on with developing processing and
manufacturing and pay more attention to seeking export markets.
He noted amid US-China trade tensions, it is necessary to
prevent Chinese goods from taking advantage of the Vietnamese market to falsify
their origin to export to the US, or Vietnam could be taxed in a way China has
been.
Source: VNA
The provincial Department of Agriculture and Rural Development on November 20 coordinated with Hai Dang Group Hoa Binh Seafood Company Limited to release 1.5 tonnes of fries into Hoa Binh Lake to regenerate aquatic resources, with a total value of 266 million VND (10,460 USD).
On the afternoon of November 16, Nguyen Phi Long, alternate member of the Party Central Committee and Secretary of the provincial Party Committee, held a reception for a delegation from the Indian Embassy led by Ambassador Sandeep Arya. The delegation included the chairperson of the Indian Chamber of Commerce in Vietnam, embassy personnel, and Indian businesses operating in Vietnam. Accompanying Long at the meeting were leaders of the provincial People's Committee and representatives from various departments and sectors.
Hoa Binh province hosted the "Meet India 2024" conference on November 16, marking a significant step in strengthening bilateral economic ties between Vietnam and India.
In recent times, with its core role in building and fostering great national unity, Cao Phong district's Vietnam Fatherland Front Committee has actively carried out its responsibilities and front work, and closely collaborated with member organisations to encourage locals to implement the Party’s guidelines, and the State’s policies and laws. At the same time, it has worked to promote the dynamism, creativity, and contributions of officials, Party members, and local people to help the district develop further.
From a type of bulb used as a seasoning for daily meals, thanks to the efforts of local authorities and farmers, shallots have become a commercial crop in Yen Thuy district, contributing to promoting the transformation of crop structure in agricultural production, bringing higher incomes to locals.
