PM questioned about economic outlook, growth momentum by WEF President

PM Nguyen Xuan Phuc (R) and President of the World Economic Forum Borge Brende in Davos, Switzerland on January 24, 2019.

Asked about possible impacts of global economic slowdown on the Vietnamese economy and fresh growth driving forces, PM Phuc said Vietnam has increasingly integrated into the global economy as evidenced by the signing of several free trade agreements. He acknowledged that global trade fluctuations generate negative impacts on all countries.

Though Vietnam backs free multilateral trading system, it needs to be aware of such fluctuations to ensure growth momentum and maintain fast, sustainable and inclusive growth.

From that perspective, it is an imperative for Vietnam to secure socio-economic stability, especially macro-economy, considering it as key foundation to assure local and foreign investors’ confidence and strengthen resilience against global economic fluctuations.

The country will continue transforming growth model on the basis of (i) innovations, development of a digital economy, (ii) restructuring of State-owned enterprises and sectors, (iii) and promoting strengths in agriculture, tourism and information technology sectors.

Besides, Vietnam needs to improve the quality of institutions in accordance with international practices and standards and as well as its commitments enshrined in the signed trade deals, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Last but not least, Vietnam will continue intensive and extensive international integration to unleash potential and strengths while improving the competitiveness in the context of the 4th industrial revolution.

PM Nguyen Xuan Phuc and President of the World Economic Forum Borge Brende at the "Vietnam and the World" dialogue

Regarding possible negative impacts of the trade wars, PM Phuc said Vietnam will continue unfolding five major driving forces to spur growth as follows:

First, the per capita income has kept rising among the 100 million population and the middle class is currently making up 13.5pc.

Second, the Government will encourage entrepreneurship and creativity of people and businesses through institutional reforms.

Third, it is the development of private economy and the Government sets goal to raise the total number of enterprises to more than one million by 2020. Many of the Vietnamese private businesses have grown strongly in both domestic and foreign markets in such important domains like manufacturing, telecommunication, aviation, banking-finance, tourism among others. Vietnam will continue luring foreign direct investment effectively.

Fourth, a new driving force may come from innovation. The Government stands ready to welcome new ideas and technologies, advance infrastructure, including Internet infrastructure.

And the 5th driving force comes from intensive and extensive international integration.