VN needs to boost reforms for higher growth rate

Photo: VGP/Huy Thang

The ADO forecasted that the nation’s inflation rate will increase 2.5% in 2015 and exceed 4% in 2016 when the oil and gas prices rise.

Viet Nam’s economic performances have been improved, said ADB Country Director for Viet Nam Tomoyuki Kimura, however, the nation needs to facilitate domestic businesses to take part in the global chain for the economy to take full its growth advantages.

When the economics in large markets such as the US-largest Viet Nam’s importer, get better, it will create forces for exports. Viet Nam may also benefit from the low oil and gas price.

Only 36% of Vietnamese enterprises take part in production network oriented to exports, and 21% of the Small and Medium sized-Enterprises (SMEs) join the global supplying chain.

He suggested enhancing inter-disciplinary coordination, especially in the process of establishing and launching policies for SMEs as well as proposing strategies for each sector to set up more industrial clusters.  

Country economist for ADB Viet Nam Dominic Mellor supposed that Viet Nam should give priority to restructuring the banking system and outline the strategy to deal with bad debt.

By Thuy Dung