Connect with us

Hi, what are you looking for?

Economy

Vietnam targets growth acceleration, shifts to high-tech gear in economic blueprint

HANOI — Having sidestepped the worst of the coronavirus pandemic so far, Vietnam aims to rev up its economy over the next five years, trusting on its custom-tooled mix of free trade deals, privatization and tight coronavirus disease 2019 (COVID-19) curbs.

Armed with a raft of free trade deals envied by regional peers and increasingly luring factories away from China, the ruling Communist Party on Monday formally approved ambitions to raise growth beyond an annual 6% in the pre-pandemic era to 6.5%-7.0% for the 2021-2025 period.

In an economic development blueprint confirmed at its five-yearly congress, it said it would boost its growing role as a key manufacturing hub for global giants like Samsung Electronics Co. and Intel Corp. At the same time, the Party is targeting raising the country’s profile beyond a low-cost labor destination to a center for science and technology.

With more than a dozen free trade agreements now under its belt, Vietnam aims to expand and diversify export markets, the Party said.

The country has reaped the benefit of China and the United States, its largest trading partners, being locked in a bitter trade war that has seen Western manufacturers look to move more and more of their production out of China — with Vietnam a popular choice.

The lofty 2021-2025 targets come as Vietnam recoils from its worst outbreak of COVID-19 in nearly two months, a reminder that future success will depend in the short term at least on keeping the virus at bay.

Last year’s 2.9% growth would have been welcome in many countries around the world, but was the worst year in decades for Vietnam’s economy as it soaked up the impact of tight quarantines, border closures and other anti-virus curbs.

Despite the pandemic, in January, a unit of Taiwan’s Foxconn Technology Co. Ltd., a key Apple, Inc. supplied, obtained a licence to invest $270 million in the country as it is moving some iPad and MacBook assembly from China. Meanwhile US chipmaker Intel said it raised its investment in Vietnam by $475 million to $1.5 billion.

The country will “focus on measures to basically complete the elements of a socialist-oriented market economy, better handling the relationship between the state and the market and society,” according to the Party’s economic blueprint.

Analysts say that’s code for Vietnam continuing its drive to privatize state-owned enterprises, except for those operating in areas deemed essential for national security and defense.

The Party also said it will shift its focus on foreign direct investment (FDI) from quantity to quality, with a focus on environmental risks.

After decades of development driven by robust FDI, largely in labor-intensive and environmentally unfriendly business, Vietnam “won’t allow projects with outdated technologies, environment pollution risks,” it said. — Reuters

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.