Vietnam is launching the five – year development plan (2016 – 2020)

Known as an emerging country in the South East Asia, Vietnam has had a sustainable development with average GDP growth rate higher than 5 percent within the past 5 years. In 2013, Vietnam got GDP growth rate at 5.4 percent and CPI at 6 percent. Export in the past three years increased at an average of 20 percent, The GDP growth rate was forecasted at 5.8 percent in 2014 and 6 percent in 2015. Investment environment for foreign investors is being improved in order to encourage the investors to invest in Vietnam.

In the Vietnam Enterprises Forum in the midst of 2014 organized on June 5th, Prime Minister Nguyen Tan Dung announced that Vietnam was developing a 5-year social – economic development plan from 2016 to 2020 with highlights of economic development and social enhancements.

“While we are aiming to grab a growth rate of 5.8 percent in 2014, we have a target of 6 percent of GDP growth rate in the period of 2016 – 2020 and we are going to achieve an average growth rate from 6.5 to 7 percent, which is based on sustainable Marco economic indicators and development,” said the Prime Minister.

In order to achieve the five years plan’s outcomes, the Prime Minister also discussed five groups of solutions.

First, Vietnam is improving its economics system as well as its markets in order to support enterprises to do business. Vietnam is also participating actively in the international markets as well as international organizations and associations.

Second, Vietnam is in the progress of restructuring in both State-owned and private sectors in order to improve its competitive competencies.

“We are going to capitalize about 400 companies in 2014 and 2015. In which, there are many corporations and Economic groups. We also encourage solutions for improvements of business management. The State-owned companies must compete fairly against others in a competitive market,” said the Prime Minister.

Third, Vietnam is developing policies that encourage all of the entities to  invest in infrastructure, including transportation, electric power as well as energy in general, environment solutions, hospitals and schools. Especially, Vietnamese Government is focusing on education reforming in order to have high-quality human resources for the economic growth.

Fourth, Vietnam is also improving legal system and strengthening the State governance in order to implement effectively and efficiently the five-year development plan as well as the national strategy.

Fifth, Vietnam is reinforcing its public security, ensuring the safe condition for people to live and work in the country. Thus, the foreign investors are protected safely when they are investing in Vietnam.

Comparing to other countries in the region, in the context of the financial crisis, Vietnam has positive signals for its development. Although the economy still relies mostly on capital and labor, it raises a huge potential for foreign investors, especially since the GDP per ca-pita has increased, at around $2000 per year since 2012 and the positive signs of the economy.