Diplomats upbeat about 2011 outlook

Infrastracture challenges will weigh on the government’s mind this year

Ambassadors from Japan, Singapore and the United Kingdom agreed they felt optimistic about Vietnam’s success to achieve its gross domestic product (GDP) growth target of 7-7.5 per cent this year, up from 6.8  per cent in 2010.

Singapore’s ambassador to Vietnam Simon Wong said the outlook for Vietnam’s economy remained largely favourable and that growth momentum was likely to continue in 2011 where Vietnam’s economy was expected to grow 7 per cent.

“The sustained growth would be backed by the strong expansion in domestic consumption, investments and exports. The global economic recovery will also increase demand for Vietnam’s exports, boosting employment and wages,” Wong said.

“The government’s efforts to reduce restrictions on foreign investment would also create a more healthy business environment and encourage more foreign investment. Furthermore, Vietnam’s efforts to engage the global economy through international memberships such as World Trade Organization and multilateral agreements will enhance Vietnam’s linkages with the global economy and access to Vietnam,” he added.

The Ministry of Planning and Investment’s Foreign Investment Agency (FIA) recently predicted that Vietnam would continue to be an attractive investment address for foreign investors in 2011.

The agency anticipated that realised foreign direct investment (FDI) capital in Vietnam would be around $11-11.5 billion this year, almost the same as last year’s figure. 

Registered FDI capital is expected to increase to some $20 billion this year from $18.5 billion in 2010. Vietnam has also targeted to raise its export revenue 10 per cent to $78.8 billion this year.

The country recorded a 18 per cent increase year-on-year to $6 billion in export turnover in January, according to the Ministry of Industry and Trade.

“I am quite optimistic about economic situation of Vietnam in the year 2011, despite some difficult economic problems regarding macroeconomic management, infrastructure development and energy shortage problems,” said Japanese ambassador to Vietnam Yasuaki Tanizaki.

“However, with a very determined political leasdership in the Vietnamese government, the country can manage all of those unfavourable conditions and to bring they economy to a new development stage,” Tanizaki said.

UK ambassador Antony Stokes agreed that Vietnam had an enormous macroeconomic success last year.

“Continuing with that macroeconomic management success will get harder as Vietnam grows. So, I am sure that succeeding and meeting the challenges of macroeconomic growth beyond middle income status will be very important if Vietnam still wants to continue seeing success,” Stokes said.