They do not see the wood for the trees (Part 2 and end)

20/02/2017
Report by the National Financial Supervisory Commission revealed in November 2016 that by the end of 2016 we could fulfil and exceed 11 of 13 set plans. The macroeconomy continues to be stable, inflation is under control (about 5%), quarterly economic growth rate increases constantly. Major proportions of the economy is basically maintained. Monetary and stock markets have seen positive developments; foreign reserves reaches a record high of more than 40 billion USD. According to the World Bank's Report, Vietnam’s business environment considerably improves and increases 9 positions (from 91st to 82nd) in comparison with the previous year. The number of newly registered businesses increases rapidly, with 101,683 new ones after 11 months, by 17.1% in quantity and 48.1% in registered capital in comparison with the same period of 2015. The latest report by Nikkei Market has shown that PMI index of Vietnam - an indicator of manufacturing sector - has increased constantly, reaching 52.9 points in September and 54 points in November. This is the 12th month Vietnam gains more than 50 points for PMI. FDI has also grown rapidly, expected to reach $18.103 billion after 11 months of 2016, of which 14.3 billion has been disbursed, increasing by 8.3% in comparison with the same period of 2015, demonstrating the credibility of foreign investors for Vietnam’s business environment. The number of international tourists to Vietnam before December 2016 is 9 million, exceeding the target of 8.5 tourists set for the whole year, bringing tourism turnover an increase of 18.6% in comparison with the same period of 2015. In spite of the fact that export targets have not been met, a positive change in the structure of export is a good sign. This is the first time value of mineral export is no longer the biggest contributor to the economy. Instead, manufacturing industries and services are the biggest ones now. The export volume of domestic businesses continuously remains positive growth (4.9%) for the whole year after constant negative growth in the previous year. In agricultural field, rice export volume decreases sharply due to the world’s declining demand, but clean fruits and vegetable have entered markets of 50 countries and territories, including the U.S., Japan, Australia. Accordingly, the value of fruits and vegetable export (2.5 - 2.6 billion USD) first surpassed that of rice export, which helps create new motivations for agriculture in the coming time. That is also a progressive trend in line with the guideline on restructuring the economy, which has been defined over the past years, particularly in the Socio-economic Development Strategy for the period  of 2010 - 2020 passed by the 11th National Party Congress.
Regarding public debt, it is true that it has increased rapidly over the past years but within the limit allowed by the National Assembly. Notably, the structure of public debt has changed positively (increasing domestic debt and decreasing foreign debt) and been strictly controlled by the National Assembly. The Government is adopting various measures to decrease public debt, striving to considerably decrease overbudget below 3.5% compared to GDP. Withdrawal of capital from state-owned businesses and privatization of infrastructure construction seriously directed by the Government are not “passive” actions like several people distort. They are still within the guideline on developing a multi-sector economy identified in many previous National Party Congresses. In this regard, rearrangement and restructuring of state-owned businesses have been implemented in many years, particularly since 2001. It is the guideline that the State only maintains businesses having 100% of their capital invested by budget and holds dominant shares in businesses which are in key fields, important areas, defence and security, and in the fields which need high-tech and huge investment, and businesses from other sectors do not invest. The other state-owned businesses must be privatized and withdraw their capital according to market mechanism. Privatization and redistribution of State’s resources including human resources, property, natural resources, natural monopoly and other advantages aim to help develop private business and enhance the competitiveness of the economy.

The things mentioned above prove that Vietnam’s economy picture does not include dark tones only. According to the WB’s update Report on Vietnam’s recent economic developments released in early December 2016, despite a fragile global environment, Vietnam’s economy remains resilient. The Asian Development Bank’s Update Report on Asia’s Potential Growth 2016 also stated that Vietnam’s economy is operating rather effectively in the context of many challenges. Predicting Vietnam’s economic prospect, Mr. Sebastian Eckardt, a senior economist of the WB in Vietnam believes that Vietnam’s growth in medium term is positive. Those are reliable and objective assessments which are completely different from one-sided comments of several people who do not see the wood for the trees. Those comments and fallacies must be severely criticized.
Chia sẻ bài viết ^^
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All comments [ 9 ]


John Smith 28/2/17 21:04

Continue to reach consensus and clarify awareness on the socialist-oriented market economy are necessary.

Gentle Moon 28/2/17 21:05

The presence (or recognition) of the market economy in countries in the world shows that this form has strong vitality and is a natural development according to rule in the history of humankind.

LawrenceSamuels 28/2/17 21:06

The confirmation of Vietnam’s economic model as the socialist-market economy has made the identification of relations between “market economy” and socialist-orientation” the key content in awareness renewal in Vietnam for the past 30 years and the years to come.

Jane smartnic 28/2/17 21:07

An economy which is regulated by two contrary sets of rule can hardly create motive force for socio-economic development, but can hinder development.

yobro yobro 28/2/17 21:10

Vietnam’s socialist-oriented economy must have progressive production relations which conform to the development level of production force.

Love Peace 28/2/17 21:11

The role of people as masters must be promoted in socio-economic development.

MaskOf Zero 28/2/17 21:12

The Communist Party of Vietnam leads the market economy to achieve the objectives “rich people, strong country, democracy, equity and civilization".

Only Solidar 28/2/17 21:13

In Vietnam’s development policy, the socialist orientation concept can be realistic only when it “contains” sustainable development for social progress, free and comprehensive development of each individual.

Pack Cassiopian 28/2/17 21:14

The State’s intervention must abide by principles relevant to the market mechanism; the State regulates market while respecting the role and functions of market.

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