Viet Huong Group Viet Huong Industrial Park

The Central Institute for Economic Management (CIEM) has forecast a 6.17% growth rate for Vietnam’s economy in the second quarter of 2016 and an inflation rate of 0.73% compared to the first quarter this year.

CIEM also anticipated an export growth rate of around 8.02% in the second quarter of this year over the same period in 2015, but with a trade deficit of approximately US$420 million.

CIEM Director Nguyen Dinh Cung said it is advisable to effectively implement regulations on trade liberalisation to reach the predicted growth rates, emphasising that the growth rate is not as important as the actual quality of growth.

“We must create a competitive business environment in Vietnam under which enterprises should firstly be competitive in the domestic market and grow independently”, Cung noted.

According to CIEM, it is necessary to comprehensively implement the Investment Law and Enterprise Law, particularly regulations on trade liberalisation and the settlement of the contradiction between the Investment Law, the Decree No.118/2015 on guiding the implementation of the Investment Law and regulations on land, environment, construction and real estate.

Economist Le Dang Doanh said that Vietnam’s joining the ASEAN Economic Community and the decrease in ODA will significantly impact the trade balance and the economy, requiring substantial reforms.

Doanh also recommended the government continue to stabilise the macroeconomy to ensure the stable and sustainable development of enterprises along with strengthening management over State-invested projects and cutting down over-diversified projects.

Source: The Business Times