Vietnam's economic growth to pick up - say ADB and WB

Ha Noi, Nov. 30 (VNA) -- "Viet Nam's economy is to pick up, and "with the right policies, the country can grow at 7-9 percent per year over the coming decade," the Asian Development Bank and the World Bank say in their reports released in Ha Noi on Nov. 29.

GDP growth in Viet Nam is expected to accelerate to 6.1 percent in 2000 and 6.4 percent in 2001 from 4.7 percent in 1999 due to a recovery in domestic private demand and robust export performances, according to the ADB's Country Economic Review for Viet Nam.

The Review - an annual ADB publication on the status of the economy - states that "after two years of economic slowdown in 1998 and 1999, there are now encouraging signs of economic recovery. A number of factors now provide a good opportunity for transforming the economic recovery to high growth."

The ADB review writes: "Leading the robust GDP growth is the expansion of output in industry, which is likely to grow by 9.7 percent in 2000 and 9.6 percent in 2001 after a 7.6 percent expansion in 1999. Services are seen growing by 4.4 percent in 2000 and 4.9 percent in 2001 compared with 2.1 percent in 1999, while agriculture performed well in the first half of 2000, resulting in 3.6 percent growth in 2000 and 4.2 percent next year. Exports, which remained robust during the first half of this year, are projected to increase by 12.9 percent in 2000 and 13.1 percent in 2001 after 23.2 percent in 1999."

Discussing the Government's projections of at least 7 percent growth over the next few years, the review notes that Viet Nam has made significant gains in poverty reduction over the past decade mainly due to strong economic growth.

Also on Nov. 29, another report, written by the WB in partnership with ADB and the United Nations Development Programme (UNDP), says that in order for Viet Nam to achieve the economic and social transformation it desires, it needs to build and strengthen its six 'pillars' of development in a prioritized way, to identify and remove impediments to growth.

The report titled "Viet Nam 2010: Entering the 21st Century", stresses the importance of coordination and partnership among all of Viet Nam's development partners so the country's resources can be used more effectively.

World Bank Viet Nam Country Director Andrew Steer said "With the right policies, Viet Nam can grow at 7-9 percent per year over the coming decade."-- VNA