Private Sector Will Drive Up Economic Growth

Vietnam has recorded some positive signals of economic recovery in the first ten months of 2014. Macro economy is assessed as stable with a trade surplus of US$3 billion and GDP’s growth of 5.62%. However, the recovery is still complained as slow and unsustainable. Weak domestic demand and lack of a driving force are the main problems now. The government has conducted some strategies to bolster aggregate demand, but they are just temporary methods.

It is suggested that the government should focus more on enhancing supply, because this policy can improve efficiency of the whole economy. The responsible authority should impose restructuring procedures and reform growth model. Identifying key sector which will be the driving force is also necessary. Most of people agree that State sector is not a good choice. Weak performance and low efficient investment are two points that are criticized mostly. FDI sector is gaining enormous achievements and is expected to keep huge contribution, especially when Vietnam finishes negotiation round of free trade agreements.

However, it is the private sector which reaches highest investment efficiency and contributes mostly to the GDP growth. Economists suggest that the government should give more priorities and prepare development strategy to boost this sector.    

Read the full article by Nhan Dan