Vietnam's growth compatible with targets

At a press conference in Hanoi yesterday, the ministry reported that last year saw improvements in the macro-economy with inflation under control, gross domestic product growth maintained at a reasonable 5.25 percent (if the base year was 2010), and social security and welfare ensured.

The budget overspending rate was reduced to 4.8 percent of GDP last year, compared to 4.9 percent in 2011.

Although some of last year's economic indicators failed to meet goals, including GDP growth and the index of industrial production, the economic growth rate was compatible with the nation's target to stabilize the macro-economy and curb inflation, the ministry said.

This year, the nation's gross domestic product growth rate was expected to be 5.5 percent and the consumer price index 6 percent, while export turnover was tipped to increase by 10 percent.

Budget overspending was expected to be below 4.8 percent of GDP and the total investment for social development would be around 30 percent of GDP.

Removing difficulties and promoting business and production would be among other measure to achieve the goals.

Results of the ministry's survey showed the nation's structural shift in economy towards the service sector, with units operating in the sector increasing by 31.6 percent in quantity and 40.4 percent in labor compared to the survey in 2007.

FDI more efficient Vietnam would complete legal frameworks and policies to improve the country's investment environment and attract more foreign direct investment while enhancing management of FDI flows to improve its efficiency, Minister Bui Quang Vinh said.

The ministry's statistics showed that as of Dec. 15 last year there were 98 countries and territories investing in Vietnam with 14,489 valid projects and total registered capital reaching US$213.6 billion.

Last year alone, the total registered capital hit US$13.01 billion, equal to 84.7 percent of the previous year while disbursed capital was US$10.46 billion, equal to 95.1 percent of the 2011 figure.

Japan was the biggest investor in Vietnam with the country's registered capital in Vietnam accounting for 13.6 percent of the total figure, followed by Taiwan, Korea and Singapore.

The FDI sector's exports (including crude oil) was US$73.4 billion, accounting for 64 percent of the country's total export turnover.

Last year, Vietnam ran a trade surplus of US$284 million, equal to 0.2 percent of total import-export turnover.

According to the General Statistics Office, the trade surplus reflected that domestic enterprises were in difficulty with decreasing demand of imports while exports of the foreign direct investment sector saw increases, which indicated this would continue to affect economic growth in coming years.

The ministry said foreign investment into the country was not expected to recover strongly for several years, and estimated the FDI registered capital this year would be around US$13 billion to US$14 billion and the disbursed capital would be US$10 billion to US$11 billion this year.

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