2010 – impressive year

High GDP growth rate

According to the National General Statistics Office, Vietnam achieved GDP growth rate of 6.78 percent in 2010, surpassing the set target of 6.5 percent.

GDP growth rate was 5.84 percent in the first quarter, 6.44 percent in the second quarter, 7.18 percent in the third quarter and 7.34 percent in the fourth quarter – the highest figure since the second quarter of 2008.

The Ministry of Planning and Investment (MoPI) says that the high GDP growth is attributed to all sectors' good performance. The industry and construction sector ranked first with 7.7 percent, followed by services with 7.25 percent and the agriculture, forestry and seafood sector with 2.78 percent.

The achievement was recorded in the World Bank (WB)’s report on Vietnam’s economy in December 2010 which said that in the context of the global economic downturn, Vietnam’s economy continued to achieve relatively high and stable growth.

The WB’s report says that although economic recovery was not even in different parts of the world the Asian region obtained quite good result. Particularly in Asia, Vietnam continued to its impressive growth. Vietnam was one of the most rapidly growing economies in East Asia and Pacific region before the global economic crisis and kept the position post crisis. After obtaining a GDP growth of 5.3 percent in 2009, the country continued to growing at 6.5-6.7 percent in 2010.

Journalist Kavi, former Chief Editor of Thai Nation Newspaper says that Vietnam is the key economy in the ASEAN bloc. With an impressive growth rate, the country has made significant contributions to ASEAN economy in an effort to recover from the global crisis.

Intel’s inaugurating the world’s largest plant in Ho Chi Minh City demonstrates that the international investor community still praised and believed in Vietnam.

Position increased

The ASEAN + 8 summit in November shows an increasing position of Vietnam in the international arena. It is a reality, not a “praise”, affirms Tran Ngoc Chau, Deputy in Chief of the Saigon Economic Times.

Pham Quang Vinh, assistant to Minister of Foreign Affairs and Head of Vietnam's ASEAN senior officials meeting (SOM) delegation, says that as ASEAN president Vietnam outlined common priorities for 2010 and actively and effectively regulated all activities in all forums and channels. Vietnam made great efforts to strengthening and expanding ASEAN external relations for peace, stability and development in the region.

Vinh affirms that other countries praised Vietnam’s regulating in expanding East Asia Summit (EAS) and inviting Russia and the US to join the summit. Vietnam also convened the ASEAN Defence Ministerial Meeting Plus (ADMM+) and the first Meeting of the ASEAN Chiefs of Security Agencies (MACOSA), approved the ASEAN Declaration on Cooperation in Search and Rescue of Persons and Vessels in Distress at Sea and the Hanoi Plan of Action to implement the ASEAN Regional Forum (ARF) Vision Statement for 2020 as well as many other important documents. They acknowledged Vietnam’s important and meaningful contribution to maintaining regional peace, stability and security.

Minister of Industry and Trade, Vu Huy Hoang, who was the president of the ASEAN Economic Community (AEC) Council, says that Vietnam successfully undertook the ASEAN presidency. All internal and external cooperation targets of the ASEAN Community in 2015 have been implemented strictly and the ASEAN role has been strengthened.

The ASEAN Secretariat affirmed that the AEC Council had a successful year and Vietnam worked effectively, actively and professionally. It had proposed many practical initiatives to contribute to the council’s success.

In 2010, Vietnam as ASEAN president took part in the G20 summit for the first time to discuss global economic issues. Prime Minister Nguyen Tan Dung presented the important speech on issues such as carrying out measures to boost a strong, sustainable and equal growth, anti protectionism and promoting trade and investment, reforming international financial institutions, climate change and green growth.

Vietnam’s initiatives, such as forming cooperation mechanism between G20 and regional organisations, like ASEAN, in implementing economic policies, were praised by the international community. Vietnam also shared its experiences with other countries in dealing with the global financial and monetary downturn and implementing Millennium Development Goals (MDG).

Vietnam’s active participation in G20 summit with its new initiatives has affirmed the country’s capacity to assume international responsibilities and global administrative positions. Vietnam has successfully fulfilled its responsibilities and was a deserving representative for ASEAN’s views and interests. It also reflected Vietnam’s viewpoints, interests and concerns and contributed to improving Vietnam’s image and prestige in the international arena as well as consolidating the relationship between Vietnam and many important nations in the world.

These successes have left a deep impression on the international community and affirmed Vietnam’s determination in the international and regional economic integration, contributing to promoting Vietnam’s image and potential to the world.

World Economic Forum (WEF) East Asia 2010, which has been held in Vietnam for the first time, was an important event, attracting more than 450 delegates including high-level politicians, CEOs and scholars.

Being the host country, Vietnam has affirmed its active role through the participation of 13 Vietnamese scholars, including government leaders, and representatives from relevant ministries, agencies and businesses at almost all sessions of the forum. Prime Minister Nguyen Tan Dung’s speech and the opinions voiced by Vietnamese scholars have also been highly appreciated.

The success of the WEF East Asia 2010 has made a strong impression on high-level leaders and international business community, contributing to promoting Vietnam’s image in the context when the world’s economy shows signs of recovery and investors are seeking stable markets and likely to cope with crises.

ASEAN nations and international friends have assessed Vietnam as having successfully fulfilled its mission as 2010 ASEAN President through its effective activities and important policies in many cooperative fields.

ASEAN has confirmed its important role in consolidating and strengthening peaceful, stable, security and cooperative environment in the region.

The above mentioned results has proved Vietnam’s important and impressive contribution as ASEAN President as dynamic, active, responsible country and fair and has won international community’s trust.

Toward a year with many prospects

Like China, Vietnam dominates the region thanks to both its high and stable economic growth rate, according to the World Bank (WB). Vietnam shows slower pace of economic recovery compared to other nations last year. According to WB analysis, the first risk appeared in 2007 when Vietnam’s economy welcomed a sharp increase in the inflows of foreign capital after it joined the World Trade Organisation. This led to a boom in credit and assets prices.

Since then, the situation became to worsen with a series of events such as escalating prices of the world’s commodities in 2008, global and financial crisis in 2009 and Europe’s debt crisis.

Currently, Vietnam’s inflation rate remains the highest in the East Asia-Pacific region in 2009 and below 10 percent in 2010.

In addition, Vietnam also has to face challenges in monetary policy because of a sharp decrease in foreign exchange and gloomy stock market as well as high difference in interest rates compared to other fast growing economies in Asia.

WB said that although Vietnam is one of the most dynamic nations in the region, it is also an exception with strong currency and inflows of capital sources and a rise in foreign exchange reserves.

According to Tran Ngoc Chau, an economist, to fulfill the targets set by the National Assembly and the Government, exports will be a national priority in the coming years.