Vietnam needs breakthroughs for higher GDP

Vietnam must create a significant breakthrough in policy making to raise its GDP, said Nguyen Van Binh, Head of the Party Central Committee's Commission for Economic Affairs.

Binh told the Vietnam's Economy Forum conference in Hanoi on Tuesday that the GDP per capita has surpassed 1000 USD since 2008 but Vietnam's growth model and quality remain unsustainable. "Vietnam's current growth rate is mostly driven by external resources. What we should do now is to reassess the sustainability of our advantages such as abundant and cheap labor force in the next 10 years amid rising competition from countries with lower production costs," he suggested.

Economist Sebastian Eckardt from the World Bank said Vietnam's GDP grew 5.1% in the first quarter and is likely to reach 6.3% for the whole year. He said: "The underlining momentum of the economy remains stronger in a short run. And in a long run, I think the focus needs to shift more to the supply side and to continue structural reforms. First is to reform the SOE sector that remains an important agenda, and to create an enabling environment for private sector development. That includes regulatory reform but also means to continue sustained investment in infractructure and human per capita development which is needed for Vietnam to really continue to grow and to achieve middle income status as envisaged in the government's document."

Participants discussed Vietnam's macro economy, its challenges for the reminder of 2017 and development in the years to come.

Source: VOV5