The private air carrier says it has to resolve several problems relating to brand name, shares, and staff
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VietJet Air seeks to delay launch for 5th time
Political tensions in Thailand next door also are leading companies to Vietnam. Calm has returned to the Thai capital after May’s deadly confrontations in Bangkok between anti-government protesters and the military, but it was one of many political outbursts in Thailand over the years
In 2001 the ruling Communist Party of Vietnam approved a 10-year economic plan that enhanced the role of the private sector while reaffirming the primacy of the state. Growth then rose to 6% to 7% in 2000-02 even against the background of global recession, making it the world’s second-fastest growing economy. Simultaneously, investment grew threefold and domestic savings quintupled.
Official corruption is endemic, and Vietnam lags in property rights, the efficient regulation of markets, and labor and financial market reforms.
Vietnam had an average growth in GDP of 7.1% per year from 2000 to 2004. The GDP growth was 8.4% in 2005, the second largest growth in Asia, trailing only China’s. Government figures of GDP growth in 2006, was 8.17%. According to Vietnam’s Minister of Planning and Investment, the government targets a GDP growth of around 8.5% for 2007.
On November 7, 2006, Vietnam became the World Trade Organization (WTO)’s 150th member, after 11 years of preparation, including 8 years of negotiation. Vietnam’s access to WTO was intended to provide an important boost to Vietnam’s economy, to ensure the continuation of liberalizing reforms and create options for trade expansion. However, WTO accession also brings serious challenges, requiring Vietnam’s economic sectors to open the door to increased foreign competition.
Vietnam’s government is rolling out the red carpet for foreign investment as Vietnam holds the role as chair of ASEAN in 2010. Vietnam has particular interest in cooperation in scientific research, education and training with the ASEAN community, achieving remarkable results in these areas in co-operation with Singapore and Thailand. However, Vietnam, like most developing countries, suffers from poor infrastructure and Vietnam needs to rely more on its internal economic strength and less on foreign investment to capitalize on its integration into ASEAN. If the country’s internal elements are not ready, the country will not be able to take full advantage of opportunities, creating even more challenges.
