ON November 11 the National Assembly agreed with the government’s economic growth target at about 6.8% in order to harmonise priorities in Vietnam’s socio-economic development plan for 2020.
Vietnam, as Asia’s new manufacturing hub, would see its strong economic growth continue next year, driven by strong exports, increasing foreign direct investment (FDI) and robust domestic demand based on a population of more than 95 million, according to experts. This year’s GDP growth was estimated at 6.6-6.8%, lower than the 7.1% secured last year.
The country’s law-making body also ratified a projected 7% rise in exports next year as Vietnam is an export-driven economy while the trade deficit should stay below 3%, and inflation below 4%.
Also, as part of the National Assembly-adopted resolution, the government is required to continue strong reform measures that aim to stimulate economic performance levels. More measures need to be taken to lure further non-State investments, from both within and outside the country, into major projects. However, a tough stance is ordered towards cases in which foreigners illegally transfer land use rights or rent land.
In addition, the legislative body asked the government to continue to defend the country’s sovereignty and pursue various ways of doing that flexibly, including using international laws.
The Southeast Asian country’s economy expanded up to 7.31% in the third quarter year-on-year. Vietnam, according to international observers, has been benefiting from rising foreign investment in manufacturing as companies divert production from China to avoid higher tariffs by the United States. Apart from its geographic proximity to China, one of Vietnam’s comparative advantages in attracting FDI is its relatively low labour cost, especially compared with China and Thailand.