Nguyen Dinh Thao
by Nguyen Dinh Thao | Vietnam’s Ambassador to Qatar
According to reports from Vietnamese government, the country’s economy saw a high growth rate in 2018. Vietnam also enjoyed a high trade surplus and successfully controlled its inflation rate.
The business environment grew tremendously in 2018 with over 26,000 new enterprises established. In addition, foreign direct investment disbursement reached over USD 35 billion in this year. Overall, the economy experienced the 7.08% growth, the fastest expansion in 10 years.
The Asian Post report describes Vietnam’s rapid growth over the past decade is mostly due to the shift from a command economy to a more open and liberal one. From 2008, the country has been implementing reforms, boosting the number of new private enterprises and foreign investment.
Doi Moi
Analysts believe Vietnam is enjoying the rewards from the reforms including the ‘Doi Moi’ (Renewal) program launched in 1986. As result of development over the past three decades, Vietnam has emerged from a backward country with 90% of its population working in the agricultural sector into a industrial and modern state.
The country has built material and technical facilities and socio-economic infrastructure, thus attracting financial and human resources for national development. After generating an annual gross domestic product (GDP) growth rate of just 4.4% in the early years of reform from 1986-1990, Vietnam’s economy experienced an impressive pace in the next nearly two decades with 8.2% from 1991-1995, 7.6% from 1996-2000, 7.34% from 2001-2005 and 6.32% from 2006-2010.
Between 2011 and 2015, due to impacts from the global financial downturn in 2008, and the European sovereign debt crisis in 2010, the Vietnam’s economic growth rate fell to 5.9% which was a lot higher than most countries in the region. Vietnam’s per capita income rose sharply to USD 2,300 in 2015. The following year, the country’s economic output was around USD 204 billion.
The macro economy has remained stable and inflation has been under control. Vietnam’s economic structure has been shifted towards modernization. The percentage of the agriculture sector in GDP is decreasing and those of services and industrial production are increasing.
Over the past three decades, all economic sectors have made big strides. Industry and construction have maintained their stable growth thanks to the application of scientific and technological advances, and the development of new industries and high technologies.
Agriculture has experienced significant changes, transforming Vietnam from a famine struck country to one of the world’s top exporters of rice, coffee, rubber, cashew and seafood. All service businesses flourished, especially in tourism, telecommunications, finance, banking and legal consultation. The exploitation of natural resources and environmental protection has been aligned with sustainable development, producing initial good results.
Bright economic prospects
A lot of financial institutions and research organizations in Vietnam and abroad have shown their optimism about the country’s economic growth in the second half of 2018 and the whole year.
The International Monetary Fund (IMF) has projected Vietnam’s economy to grow by 6.6% in 2018 and the inflation rate to be kept under 4% thanks to the country’s economic reform and its government’s commitment to stabilize the macro economy.
The Asian Development Bank (ADB) also projects that the economy will expand by 7.1% this year, while the Word Bank (WB) raised its expectation for Vietnam’s economic growth at 6.8%.
The Central Institute for Economic Management (CIEM) was optimistic that Vietnam’s growth can reach 6.71% instead of 6.67% as previously predicted.
Macroeconomic indicators are also bright: annual export growth is projected at 12.11%, trade surplus at USD 1.2 billion USD and the average inflation rate at 3.93%.
The momentum for economic growth has been maintained, not based on the monetary expansion but associated with changes in business environment.
The gross domestic product (GDP) expanded by 7.08% in the first six months of the year, the highest level since 2011. Additionally, the confidence of businesses has been reinforced.
25 years of traditional friendship between Vietnam and Qatar
Diplomatic ties between Vietnam and Qatar were officially established on February 8, 1993. In recent years, the political relationship between the two countries has been strengthened based on mutual trust and understanding, providing a solid basis for promoting economic, trade, investment, cultural, education and national security relation.
Over the last ten years, high-level official visits have been exchanged between the two countries: Qatar was visited by Prime Minister Nguyen Tan Dung in 2009 and by Vice Prime Minister Nguyen Xuan Phuc in 2014; in 2012, Emir of Qatar; Sheikh Khalifa bin Hamad al-Thani paid a state visit to Vietnam.
2018 bilateral trade turnover reached more than 400 million USD including seafood, power cables, wood products, construction glass, electronics... from Vietnam to Qatar and liquefied gas, plastic materials, chemical products, plastic material… imported by Vietnam. The new direct flight routes from Doha to Hanoi, Ho Chi Minh City and Da Nang boosts the opportunities for bilateral trading and tourism cooperation. In November 2016, Qatar officially recognized Vietnam as a full market economy.d
