Vietnam Business Forum bullish on economic growth

The annual forum provides a platform for discussion about the opportunities and challenges facing the business community and urban municipalities during the nation’s movement to a more industrialized society.

The speakers for the event, who came from a wide range of backgrounds, reflected the dual local and global focus of the forum and they discussed urban progress underpinned by notions of sustainable development.

Minister of Planning and Investment Bui Quang Vinh said the country faced a number of challenges in implementing socio-economic targets in the first few months of the year.

Vietnam businesses still face difficulty in expanding sales and production Vinh said adding that the nation’s competitive edge, particularly in agriculture is still weak and won’t thrive until it improves.

Vinh said the Government is taking steps to restructure the economic and growth model, encourage the Public-Private Partnership (PPP) investment method, speed up equitisation of State-owned enterprises, raise business efficiency and create equality in resource allocation.

Minister Vinh expressed his hope that with the strong commitment and determination of the business community, the Vietnam economy will thrive in 2015 and coming years.

Sherry Boger, general director of Intel Products Vietnam, in turn highlighted Vietnam-US bilateral trade relations saying that in 2014 bilateral trade jumped 20% on-year to an all time high of US$36.3 billion.

Over the next few years trade is forecast to further expand to US$72 billion she said adding that Vietnam is the leading ASEAN exporter to the US market, making up 22% of the bloc’s market share.

Boger said she believed that the Trans-Pacific Partnership (TPP) would be approved and Vietnam’s exports could potentially expand to US$307 billion when the agreement comes into full force.

The World Bank has forecast that Vietnam’s economic growth will be 5.6% in the period 2008-2018 and but could potentially reach 10.5% when and if the TPP is ratified by the 12 member nations, she said.

For his part, Shinmon Tokuyama, president of the Japanese Business Association in Vietnam, applauded the Vietnam government for managing to keep economic growth above 6% in the early months of the year.

Tomaso Andreatta, vice president of the European Chamber of Commerce (EuroCham) said its members have positive assessed Vietnam’s business environment and competitive edge and fully expect great things to happen in 2015.

Andreatta echoed Boger’s view and pointed out the Free Trade Agreement between EU and Vietnam, and the ASEAN Economic Community will also spur Vietnam development.

Besides, opening door to attract more foreign direct investment, the free trade pacts will also accelerate technology transfer, helping Vietnam avoid the ‘middle income trap’, he stressed.