According to the General Statistic Office, GDP growth in the first quarter of 2015 was 6.03%, the highest growth rate since 2011. It indicates the signs of economic recovery. Economic experts say that there are several reasons for this situation.
Tran Du Lich, member of Vietnam’s National Assembly of Ho Chi Minh City said: “Many enterprises have overcome difficulties since 2014 and expanded their business. The FDI sector has also developed further. Despite low prices, the agricultural sector’s contribution to the entire economy has increased. The recovering real estate market and increasing demand in general are also indicators of GDP growth”.
In spite of the high growth in the first quarter, experts still wonder about its stability. The FDI sector contributed 60% to the economic growth and has advantages when competing with domestic companies. Therefore, economists urge for better solutions to help domestic companies improve their capacity and competitiveness.
“Domestic enterprises have low competitiveness compared to FDI companies. Thus, it is difficult for the economy to growth sustainably. In 2015, Vietnam will be more integrated into the international market. We should boost administrative reforms to restructure the economy” – said economist Tran Du Lich.
According to the International Monetary Fund, the Vietnamese economy is expected to grow at 6% in 2015. After seeing the results from the first quarter, domestic firms can be more positive about the business environment. However, they know that they still need to improve their capacity to compete with FDI companies and grow more sustainably.
