Despite global economic uncertainty and possible inflation before the end of the year, Vietnam’s economy has seen encouraging signs.

Vietnam’s economy is expected to continue growth momentum thanks to the government’s resolute determination and wise management, production recovery, and the advantages of new free trade agreements (FTAs).

Taking advantage of opportunities

In order to attain Vietnam’s economic growth target of 6.7% this year, all sectors have to make the most of opportunities inside and outside Vietnam. The processing and manufacturing industry continues to provide the driving force.

Minister of Planning and Investment Nguyen Chi Dung is hopeful about the Nghi Son Oil Refinery. “If we can put the project into operation, it will create a motive power. We need to promptly resolve problems and speed up progress on major projects.”

Business indexes and the number of newly established enterprises show that Vietnam’s economy has prospered. The implementation of free trade agreements will create a new environment and motivation for investment.

Minister of Industry and Trade Tran Tuan Anh said, “Markets of FTAs and preferential mechanisms with China, the Republic of Korea, Russia, and ASEAN have been better exploited. The target of 10% export growth in 2018 is feasible. Export revenue in the second half of the year should reach US$20 billion per month. It’s possible. If the National Assembly’s year-end meeting ratifies the Comprehensive and Progressive Trans-Pacific Partnership, we’ll have good conditions to attract investment and expand markets.”

Advantages from an international perspective

Foreign experts have made positive comments about Vietnam’s economic growth. Ousmane Dione, World Bank Country Director for Vietnam, said Vietnam's medium-term prospects continue to improve and GDP is expected to grow 6.8% this year.

Eric Sidgwickl, ADB Director in Vietnam, said Vietnam’s rapid growth is due to many factors, including the expansion of manufacturing and export, higher domestic demand, strong foreign direct investment, and improved agriculture.

Japan’s Nikkei said employment in Vietnam is at a record high. Vietnam’s Purchasing Managers’ Index (PMI) increased from 53.9 points in May to 55.7 points in June, while ASEAN’s PMI fell from 51.4 to 51 points.