According to the Vietnam Economic ICAEW will be brighter in the next two years-Photo illustration: Hung Le
(Saigon Times Online) - According to the report "Economic Spotlight: Southeast Asia," the latest of the Institute of Chartered Accountants of England and Wales (ICAEW), although economic activity slowed in the first half of 2016, growth Vietnam's growth prospects remain high thanks to funding foreign direct investment (FDI) at record levels and strong domestic platform.
According to reports, ASEAN's economic prospects are still quite satisfactory in the context of economic uncertainty and global politics. Recent data showed improvements in trade in several economies such as Vietnam and Singapore, and the ASEAN's central bank may likely policy easing to support economic growth.
As reported by the ICAEW, ASEAN economies affected by the overall slowdown in the pace of globalization, or the weakening of the uniform opinion in favor of free trade. However, many economies in the region such as Vietnam have also very successfully promoted to the global value chain thanks to the opportunities that free trade and investment flows brings.
The report showed that low oil prices and prolonged drought affecting agricultural production leading to Vietnam's growth slowed in the first half of 2016. However, the industrial sector is driven thrive strong by FDI inflows and the business environment will be improved constantly to help minimize the negative impact.
FDI is still on track to set a record this year thanks to the appeal by the low-cost investment, improvements in infrastructure and labor skills, the business environment with many regulations to be abolished are increasingly open doors for enterprises with 100% foreign capital, according to reports ICAEW.
The forecast of GDP of Vietnam in 2017 may reach 6-6,7%.
According to the report, economic growth prospects brightest of ASEAN during the period 2017-2018 as the Philippines and Vietnam. "We forecast economic growth will reach 6% in 2016 and could rise to 6.7% in 2017 and 2018," according to the report ICAEW.
According to Ms. Priyanka Kishore, ICAEW Economic Advisor and Head of Economic Expert Group under the organization Oxford Economics, in a press release: "Although the government has set out a number of projects aimed at promoting growth in the short term, but the possibility of fiscal stimulus is not much and the budget deficit has increased significantly. What is happening shows that the success of Vietnam's economy clearly depends heavily on whether Vietnam can continue to have more opportunities to trade with those economies with higher incomes, as well as access to financial resources and technological investment or not. "
Said Mark Billington, ICAEW regional director of Southeast Asia, said in recent years, large FDI inflows have boosted the growth of Vietnam's economy. Agreements such as the Agreement Trans-Pacific Partnership (TPP) have an important role because these agreements are not only capable of directly promoting trade and investment flows, but also help bring business practices good business in signatory countries. Therefore, if the speed boost through cooperation agreements such as these have signs of slowing down, governments and businesses are looking for alternative ways to improve the business environment.
(Source: ICAEW and Vietnamnet)