Vietnam economy to grow faster in 2016-20: premier

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Vietnam economy to grow faster in 2016-20: premier

Vietnam’s economy is projected to grow faster in the next five years from the current rate of about six percent, Prime Minister Nguyen Tan Dung said in a meeting with international donors in Hanoi last week.

 The Southeast Asian country has set a goal for an average gross domestic product (GDP) spike of 6.5-7 percent during the 2016-20 period, the Vietnamese premier announced at the Vietnam Development Partnership Forum on Saturday.

The targeted growth, built upon the foundation of macroeconomic stability, will surpass the six percent pace achieved during 2011-15, he added.

The World Bank and Asian Development Bank (ADB) said in their latest forecasts released in October and December that Vietnam’s GDP will likely rise over 6.5 percent to $192 billion this year.

In 2016, the Vietnamese economy will expand 6.6 percent, the ADB said in an Asian Development Outlook supplement released last Thursday.

The ADB report, stressing that Vietnam’s GDP in 2015 will hit a five-year high, echoed what the Vietnamese government had announced in a meeting on socio-economic review late last month.

The Vietnamese gross domestic product surged 5.98 percent in 2014 against the previous year to top $186.2 billion.

The Southeast Asian country saw a growth rate of 5.2 percent in 2012, the lowest in the last five years.

To realize such a said goal, Vietnam will continue to consistently implement three strategic breakthroughs, including consolidating its institutions and laws, developing education and training for quality human resources, and improving its transport infrastructure system, the premier said.

The three strategic breakthroughs will materialize via five main groups of solutions, namely ensuring and strengthening the stability of the macro-economy and banking system, perfecting market economy institutions, proactively integrating into the global economy, and ensuring equity, social security, welfare and cultural conditions, according to the Vietnamese government chief.

Better income per capita

Vietnam’s GDP per capita will also go up following the projected GDP growth during the next five years, Minister of Planning and Investment Bui Quang Vinh said at the Hanoi meeting.

The country’s per capita income will likely reach US$3,200-3,500 by 2020, an increase of 45.4-59 percent compared to the 2015 rate, Minister Vinh said.

In 2015, the GDP per capita rate is to hit $2,200 given the projected GDP growth, Deputy Minister of Planning and Investment Nguyen The Phuong said in a meeting in Hanoi in July this year.

“If calculated against purchasing power parity, the figure would be over $5,600,” Deputy Minister Phuong noted.

According to the General Statistics Office of Vietnam, GDP per capita in 2013 was $1,908, or $5,293 based on purchasing power parity.

Thus, Vietnam’s per capita income has increased 15 percent over the past two years, the official said.