Vietnam will continue to face challenges but will see plenty of opportunities for economic growth in 2017.
Experts say the advantages for Vietnam’s economy in 2017 will come from free trade agreements and the Government’s commitments to institutional reforms to facilitate the business environment. Export, real estate and securities markets are also expected to enjoy stable growth.
Benefits from free trade deals
The new US administration may abandon the Trans-Pacific Partnership (TPP) agreement but alternative options are being discussed. Vietnam and other TPP partners can make some adjustments and implement this important deal. A free trade agreement with the EU is also a possible advantage for Vietnam.
“The EU is encountering major internal challenges but Vietnam has established strategic partnerships or comprehensive cooperative partnerships with several key EU member countries. We need to promote these relationships for long-term cooperation with the EU. In addition, FTAs with the Republic of Korea and some other countries will continue to serve as a solid foundation for Vietnam’s economic growth”, said economist Pham Chi Lan.
Ms. Lan added that the renewal process and experiences learned will offer more opportunities to Vietnam: “Economic pressures will push Vietnam to take stronger actions to move forward. In its integration process, Vietnam has realized that internal strength is vital for development. We must reinforce the strength of the national economy and domestic businesses because no country can develop relying merely on external resources.”
Vietnam’s real estate market is improving and will likely become the most attractive destination in Southeast Asia for foreign investors. Dragon Capital President Dominic Scriven says that Vietnam’s securities market will go up with net profit growth estimated at 19% in 2017.
Determination to reform institutions and policies
Institutional reform and improvements in the business climate will create a momentum for the private sector to become the main driving force for the economy in 2017. Businesses also expect more favorable conditions as the Government has proved its resolve to promote the restructuring of public investment, the state budget and public debt, and fight corruption and wastefulness.
“Vietnam has climbed 9 notches in the World Bank Doing Business 2017 report and moved up in the World Economic Forum’s ranking of the international trade environment. Improvements have been seen in streamlining import-export procedures.
The Prime Minister has repeatedly committed himself to raising Vietnam’s economic competitiveness, building a state that supports and cooperates with businesses and creating a government of integrity”, said economist Le Dang Doanh.