The deficit is expected to top $6.7 billion as exports are hit by several factors
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Vietnam 1st half trade gap triples
In 2009, the economy contracted about 2.8%. The Thai government is focusing on financing domestic infrastructure projects and stimulus programs to revive the economy, as external trade is still recovering and persistent internal political tension and investment disputes threaten to damage the investment climate.
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.
Considering the complex mix of opportunities and challenges both in the economy and politics, the position of Vietnam has obviously strengthened vis-a-vis many of its regional competitors. Many observers have commended the government for upholding growth in the face of the recent recession. Despite this, Vietnam, faces many challenges that will need to be faced and solved. Traffic in major cities like Hanoi and Ho Chi Minh City is becoming increasingly congested and chaotic. The government is investing in road improvements but investment is not occurring fast enough to help accommodate all the new motorcycles and cars being added. Air and water pollution is a concern in many areas. The government has expressed determination to increase spending on education and some of this is occurring but more is needed. Some areas like Binh Duong outside of major cities offer much the better opportunities. Vietnam in many ways offers one of the most interesting and potentially fruitful markets for investment although the reality is that investors will need to be willing to accept short-term pain in terms of traffic, pollution, lesser trained technicians and management to gain the longer term growth opportunities that Vietnam certainly has the potential of delivering those with well thought out business plans and properly researched and implemented investment and manufacturing ventures.
Education and the system of higher learning and technical schools is very important to business as it provides the trained workers and also a system to transfer skills and train new employees needed in a modern business society. In Vietnam, the economy in recent years has had a remarkable performance. GDP growth increased 8.5% in 2006, 8.2% in 2007 and 8.5% in 2009. In 2009, according to the Asia Development Bank (ADB) in their latest late September, 2009 revision the bank predicted that growth would be 4.7% for all 2009. Growth in 2010 is projected at 6.5 percent according to the same source. Future growth is highly dependent on a high quality workforce who are better skilled and trained in modern education and with better quality language skills.
