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Vietnam's GDP growth rate reaches
7.7%
HANOI - Vietnam
overcame numerous difficulties to obtain a gross
domestic product (GDP) growth rate of 7.7% in
2004, creating favorable conditions for the
country to realize its target of 8.5% growth in
2005.
Vietnam ranks second in Southeast
Asia after Singapore in GDP growth rates.
The achievement was of great significance
as the country coped with adverse weather, flash
floods and prolonged drought, the outbreak of
avian flu, and increased prices for production
materials.
The brightest point in
Vietnam's economic outlook in 2004 was its export
revenue of US$26 billion, a seven-year high and an
increase of almost 30% compared to 2003.
Export volume represented $3.82 million or
65.5% of the $5.82 billion export increase, while
price increases only accounted for $2 billion or
34.5% of the total.
Six export items,
including two new products - electronics and wood
products - entered the list of goods registering
annual overseas sales values of more than $1
billion.
The export outlet structure
became increasingly stable in 2004 as local
business people appeared more dynamic and
proficient in investment, production and marketing
activities. Many local entrepreneurs succeeded in
landing business contracts and export orders at
the beginning of the year.
The US market
drew attention from local business circles last
year. However, export earnings from this potential
market rose only 19% in 2004 due to limited
textile and garment export quotas and adverse
impacts resulting from the shrimp dumping lawsuit.
Local exporters also tried to expand their
market share in the European Union, Japan, and
China. As a result, export revenues from the EU
market rose almost 20%; the Japanese market, 19%;
and the Chinese market, 66%.
Vietnam's
import value also jumped in 2004. Consequently,
the country registered a record trade deficit of
approximately $5.52 billion. The country mainly
purchased material, fuel, equipment and machinery
for capital construction and for export
production.
Another outstanding
achievement of the 2004 economy was the successful
efforts to mobilize almost VND259 trillion
(roughly $16.4 billion) for social development
projects and programs, up 19% year-on-year and
accounting for 36.3% of the country's
GDP.
Vietnam drew $4.1 billion in foreign
direct investment (FDI) in 2004, up 28.6% compared
with last year's corresponding figures, and a
seven-year high record.
At the 2004
conference of consultative groups, international
donors committed $3.44 billion to Vietnam in 2005,
the highest level so far.
The achievements
were attributed to the government's careful
management, provinces' and cities' effective
campaigns to draw investment and increase exports.
Vietnam's economic growth has helped
create jobs for 1.5 million people and has reduced
the unemployment rate to 5.6% in urban areas.
The poverty rate was reduced to 8.3%. The
government invested in infrastructure in 2,374
villages, built more than 400 village centers and
trained more than 5,000 village cadres.
Of
the 64 cities and provinces in the country, 36
have 10% of households still living below the
poverty line. Bac Can, Dien Bien, Lai Chau and Soc
Trang have 20% of their households classified as
poor. The country plans to reduce the poverty rate
to under 7% this year.
Vietnam has also
intensified investment in socio-economic
development in remote, mountainous, and border
areas inhabited by ethnic minority people.
However, the economy still revealed
weaknesses, including unstable economic structure
and the slow change of labor structure in
comparison with the economic structure. The speed
of equitizing state-owned enterprises and
reforming the banking sector is slower than
planned. Worse still, the wastefulness and losses
in capital construction have not been effectively
resolved.
This year, Vietnam will continue
to improve the investment and business
environment, reduce production costs, raise the
quality and competitiveness of Vietnamese
products, and attract more FDI and official
development assistance.
The country will
also maintain stability in macro-economics and
business environments, and speed up negotiations
on joining the World Trade Organization.
(Asia Pulse/VNA) |
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