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Private sector expands density in total social investment

VGP – Investment density of the non-State sector was on the rise from 38.5% in 2011 to over 43% in 2018, increasing nearly 5 percentage points in total social investment, according to the Central Institute for Economic Management (CIEM).

September 23, 2019 2:54 PM GMT+7

 

The CIEM reported that non-State investment (the private sector) became a driving force for growth in the 2011-2018 period particularly after 2014 when the Government began pursuing drastic renovation and business environment improvement. 

Directive No. 1792/CT-TTg, dated October 15, 2011 on enhancing the management of investment projects funded by the state and government bond proceeds was the first step in the process of investment restructuring which began from public investment, then in early 2013, developed the master scheme on economic restructuring in combination with the transformation of the growth modal. 

The CIEM reported that in the 2012-2013 period, social investment experienced a sharp decline and backed on track since 2014, reaching over 33.5% in 2018. 

Regarding economic components, State investment decreased from 13.5% in 2012 to only 1.43% in 2018. Meanwhile, non-State investment increased from 6.23% to 13.9% in the 2011-2015 period. Noticeably, in the 2017-2018 period, investment of the private sector picked up by 15%, nearly double the rate of total social investment. 

Regarding density, private investment grew from 38.5% in 2011 to over 43% in 2018.FDI sector witnessed a slight decrease of over 39% in the 2011-2019 period to about 35.5% in the 2016-2018 period. State investment density jumped slightly from 22.6% in the 2011-2015 period to about 23.6% in the 2016-2018 period. /.

By Khanh Phuong