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Tuesday,  Jan 16, 2018,14:49 (GMT+7)
Experts warn against complacency over economic growth
Tu Giang
Monday,  Jan 8, 2018,18:40 (GMT+7)
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Experts warn against complacency over economic growth

Tu Giang

HANOI – Too much optimism about economic growth may lead to out-of-control situations like what happened ten years ago, according to economic experts at a recent conference on investment-business opportunities.

At the conference held in Thanh Hoa Province last week, director of the Vietnam Institute of Economics Tran Dinh Thien mentioned how local newspapers praised economic growth. He said that stock, foreign direct investment (FDI) attraction, foreign reserves, trade and tourism growth were described as outstanding.
“We need to have a more cautious look,” Thien said.

Sharing the same view, Vo Tri Thanh, former vice president of the Central Institute for Economic Management, said that the economy has only seen a more marked recovery, reflected by gross domestic product (GDP) growth of over 6% in the past three years. Economic growth is not sustainable yet, he added.

According to Thanh, a growth rate of 6.8% is high but not considerable when compared to regional performances. To be on a par with Malaysia in 2035, Vietnam needs to achieve growth of 7-7.5% annually.

Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises, said Vietnam’s GDP per capita of nearly US$2,400 is not high. In ASEAN alone, GDP of Indonesia has already exceeded US$1,000 billion, whereas that of Vietnam is only US$220 billion.

Nguyen Xuan Thanh from Fulbright University Vietnam said the economic recovery in the past year is attributed to the recovery of the global economy and the stability of the local currency.

In addition, increasing spending has helped promote growth since 2015. Higher incomes and purchasing power are important motives for this year’s growth, according to Thanh.

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