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Economic restructuring may slow growth

Released at: 15:18, 09/04/2016

Economic restructuring may slow growth

Workers make clothes for export

Action necessary as the TPP and FTAs come into being may have short-term impact on growth, conference hears.

Vietnam is forecast to grow 6.5 per cent or less in 2016, depending on the progress of economic restructuring, Mr. Truong Dinh Tuyen, former Minister of Industry and Trade and senior adviser to the government during negotiations over the TPP, told a conference in Ho Chi Minh City on April 8 analyzing the challenges and opportunities brought about by the agreement.

Mr. Tuyen believes the free trade agreements (FTAs) Vietnam has signed will have little impact this year and that the difficulties that have arisen in the local market are from the global economy’s slow recovery.

Drastic action to restructure the economy will lead to slower growth in the short term, he said, but this is healthy and will soon be balanced by a significant improvement in the business climate.

Others in attendance forecast that the TPP will take effect next year. This and other FTAs will stimulate the global economy. In Vietnam the management apparatus at different levels will be operating more smoothly by that time, with new businesses on the rise. These factors are expected to boost growth in 2017 and 2018.

Mr. Herb Cochran, Executive Director of the American Chamber of Commerce in Vietnam (AmCham), stressed that Vietnamese enterprises should invest in goods production right now. They also need to work on documents accrediting their products’ origin and components for export to a TPP member state.

Mr. Le Van Khoa, Deputy Chairman of the Ho Chi Minh City People’s Committee, said the city is committed to helping local enterprises prepare for the TPP through information updates and guidance on trade commitments, intellectual property laws, and labor laws, among other things.

Source: VNA

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