ADB: Vietnam GDP Shall Grow 5.6% in 2014

On September 19th, 2014 the Chairman of Asia Development Bank (ADB), Mr. Takehiro Nakao visited Vietnam and shared his view on the development of Vietnam economy in terms of inflation, GDP growth rate, and the market mechanism.  The Chairman of ADB is impressed by the achievement in the development of Vietnam, especially in the efforts of the Government to suppress the inflation, restructure of State Enterprises and stabilize the macro economy.  ADB forecasts that Vietnam shall grow 5.6% in 2014 and encourage the Government to aim for the target growth of 7-8% in the following years to come.  ADB also promises to provide USD 630 million for Vietnam in the next 10 years to implement the restructuring of a few large State Enterprises and to support Vietnam in the long term, to develop a more transparent and diversified economy.

However, it is noted that Vietnam can not only rely on the foreign direct investment to develop. It will also take the efforts from domestic businesses and companies as well. This is a stagnated issue in many years, which has been hindering the growth potential of the economy and slowing down the poverty eradication of Vietnam. To solve this problem in the period from 2014-2020, ADB shall continue assisting Vietnam businesses, to help them improving the competency against foreign counterparts.

Looking forward, in the long term, the private economy sector shall take an important role in the promotion of the competency of Vietnam. To further develop the private economy sector, it is recommended the Government to efficiently restructure the regulations relating to commercial law that allow a more transparent business environment.