Vietnam anticipates $2,300 GDP per capita in 2015

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Vietnam supermarketThe Vietnamese Ministry of Planning and Investment is forecasting an annual economic growth rate of 6.2 per cent in 2014 and 2015 that will push Vietnam’s nominal GDP per capita to $2,300 by 2015 from the current $1,528.

The prediction was released at the monthly cabinet meeting in Hanoi on August 28. Under the ministry’s 5-year outlook, social investment will constitute 32 per cent of GDP, with state budgetary overspending equivalent to 4.5–4.6 per cent of GDP.

However, cabinet members raised concerns regarding a slowdown in total consumer demand, weakening purchasing power and capital access difficulties. Finance Minister Dinh Tien Dung proposed raising the budgetary overspending to 5.5 per cent of GDP.

Meanwhile, Vietnam’s National Financial Supervisory Committee has said the government should take strong measures to boost consumption and investment if this year’s 5.5 per cent growth target is to be achieved. In a review of the economy in the first half, the committee said there are signs that production has picked up, but it needed a push, news website Voice of Vietnam reported.

Industrial output has been increasing since March 2013, with imports of feedstock and raw materials in the first half rising by 17.8 per cent over the same period last year, and inventories have shrunk from 21.5 per cent on January 1 to 8.8 per cent six months later. Exports rose by 16.1 per cent, with Vietnamese companies reporting 2.2 per cent growth.

Incorporation of new companies was up 8.4 per cent year-on-year in the first seven months of 2013. Around 10,000 business that had suspended operations have also reopened.

But recovery is not firm yet given the diminished purchasing power and high production costs, the economists said. Meeting the 5.5 per cent growth goal would be a “big challenge.” In the first half of 2013, GDP growth was 4.9 per cent, around the same as 2012.

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Reading Time: 1 minute

The Vietnamese Ministry of Planning and Investment is forecasting an annual economic growth rate of 6.2 per cent in 2014 and 2015 that will push Vietnam’s nominal GDP per capita to $2,300 by 2015 from the current $1,528.

Reading Time: 1 minute

Vietnam supermarketThe Vietnamese Ministry of Planning and Investment is forecasting an annual economic growth rate of 6.2 per cent in 2014 and 2015 that will push Vietnam’s nominal GDP per capita to $2,300 by 2015 from the current $1,528.

The prediction was released at the monthly cabinet meeting in Hanoi on August 28. Under the ministry’s 5-year outlook, social investment will constitute 32 per cent of GDP, with state budgetary overspending equivalent to 4.5–4.6 per cent of GDP.

However, cabinet members raised concerns regarding a slowdown in total consumer demand, weakening purchasing power and capital access difficulties. Finance Minister Dinh Tien Dung proposed raising the budgetary overspending to 5.5 per cent of GDP.

Meanwhile, Vietnam’s National Financial Supervisory Committee has said the government should take strong measures to boost consumption and investment if this year’s 5.5 per cent growth target is to be achieved. In a review of the economy in the first half, the committee said there are signs that production has picked up, but it needed a push, news website Voice of Vietnam reported.

Industrial output has been increasing since March 2013, with imports of feedstock and raw materials in the first half rising by 17.8 per cent over the same period last year, and inventories have shrunk from 21.5 per cent on January 1 to 8.8 per cent six months later. Exports rose by 16.1 per cent, with Vietnamese companies reporting 2.2 per cent growth.

Incorporation of new companies was up 8.4 per cent year-on-year in the first seven months of 2013. Around 10,000 business that had suspended operations have also reopened.

But recovery is not firm yet given the diminished purchasing power and high production costs, the economists said. Meeting the 5.5 per cent growth goal would be a “big challenge.” In the first half of 2013, GDP growth was 4.9 per cent, around the same as 2012.

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