PM: VN looks to bolster private sector output

PM Nguyen Xuan Phuc

The PM also said that Viet Nam, bolstered by new trade agreements and improved conditions for businesses, was set to surpass its GDP growth rate of nearly 7% last year, and maintain this momentum for “many years to come”. 

The private sector is an important impetus for the economy of Viet Nam. The nation will try to put in place the most favorable policies and create the most favorable environment so that by 2020 we will have in operation over one million businesses accounting for 50% of Viet Nam’s GDP, up from 43% at present.

Viet Nam’s export-driven economy grew 6.8% last year, one of the strongest showings in South-east Asia.

He expressed his hope that the growth figure of this year will exceed that of last year, and the figure will be sustained through at least 2020 and that impetus will be maintained for subsequent years.

In order to attain this, Viet Nam will try to maintain favorable conditions for businesses, a healthy environment for businesses and further international integration, especially support for the private sector and nurture innovation so that we can enhance GDP growth for many years to come.

Mr Phuc said his government would also support small and midsize enterprises and give “special attention” to agriculture and the development of rural areas, which contribute a modest share of the country’s GDP, but account for a larger share of employment.

Viet Nam’s government is also banking on an economic lift from new trade agreements, including the new act between 11 Asia-Pacific countries signed in March in response to President Donald Trump’s withdrawal of the U.S. from the proposed Trans-Pacific Partnership.

Members of the new grouping, called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), have said they were open to the U.S. — Viet Nam’s largest export market — joining in future, and Mr Phuc said that he hoped it would.