A worker prepares spool of yarn at a factory in southern Vietnam
Analysts at a recent economic conference in Ho Chi Minh City presented a brighter economic outlook for Vietnam this year, naming a number of industries that have begun to bounce back.
Le Xuan Nghia, head of the Business Development Institute, said textile and garments, footwear, and wooden furniture are among industries in the manufacturing-processing sector that have been recovering at a fast pace although they were affected first by the economic slump a few years ago.
He said their recovery started in September last year with the manufacturing gauge, released by HSBC and Markit Economics, remaining at the above-50 level, which indicates expansion, since then.
The three industries had their products listed in the top ten export items last year.
Nghia ranked construction materials and telecommunications second and third place in terms of rapid improvement from the downturn, but was also concerned about fierce competition that the local building materials industry is facing from Chinese businesses.
He also forecast that services sector would see an upturn as soon as the economy picks up.
He suggested local businesses target suitable market segments to be more competitive against their foreign rivals.
The nation’s GDP, estimated at 5.4 percent in 2013, marks the second straight year Vietnam has missed its growth target.
Economist Tran Du Lich forecast that growth would rebound this year and in 2015 given the government’s efforts to reform institutions, ensuring the continuance of market mechanisms and promoting healthy competition.
Vo Tri Thanh, deputy head of the Central Institute for Economic and Management, agreed, saying Vietnam should persist with its policies of economic stabilization and structural reforms to catch up with the developing trend of the world.
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