Economic institute predicts Vietnam's GDP growth at 6.17 pct in Q2

By Lam Le May 13, 2016 | 03:46 am PT

Vietnam’s GDP growth for Q2/2016 is forecast to reach 6.17 percent while inflation is expected to rise 0.73 percent compared to last quarter, according to the Central Institute for Economic Management (CIEM) under the Ministry of Planning and Investment.

Exports in Q2/2016 are set to increase by 8.02 percent year-on-year but the trade balance will experience a $420 million deficit.

CIEM Director Dr. Nguyen Dinh Cung said in order to achieve such growth, regulations on business freedom have to be followed while eliminating all unauthorized business requirements [unnecessary bureaucracy].

“First and foremost, businesses have to be able to compete domestically, and not rely on connections or simply pleading with authorities in order to grow,” said Cung.

Dr. Le Dang Doanh, an economist, said that when Vietnam joins the ASEAN Economic Community, the country’s trade balance will be strongly affected. Furthermore, he called for strong reforms as limited access to ODA funds may negatively affect Vietnam’s growth.

Vietnam's GDP grew by 5.46 percent in the first quarter of 2016, according to the General Statistics Office, while the Prime Minister has set a target of 6.7 percent GDP growth for 2016.