Hanoi (VNA) – The likely grossdomestic product (GDP) growth rate of 6.8 percent and improved business climateare among the highlights of Vietnam’s economy in 2018, experts said.

Economic expert Nguyen Minh Phong said thecountry’s GDP this year is likely to expand by 6.8 percent – a pace even fasterthan China’s, while credit growth has slowed and bad debt has declined, showinginvestment in society has become more effective.

Another highlight is the improved investmentenvironment, recognised by both domestic and foreign enterprises, he noted,adding that red tape has been slashed by the Government.

Additionally, Vietnam remains a destination forforeign investment and tourists, and the country has been an active player ininvesting overseas and integrating into the global economy, Phong said.

Echoing this view, Le Dang Doanh, formerDirector of the Central Institute for Economic Management, said Vietnam hasobtained relatively comprehensive economic achievements in 2018.

Notably, the Government has strived to maintainthe startup movement. Almost 121,250 new businesses with total registeredcapital of 1.23 quadrillion VND (nearly 52.78 billion USD) were set up betweenJanuary and November, respectively up 4.5 percent and 9.1 percent year on year.That reflects the business climate’s improvement, which has created moreoptimal conditions for firms to be formed.

Another positive sign is that average registeredcapital per company hit 10.2 billion VND (more than 437,600 USD), up 4.1percent from a year earlier.

The country has also been working hard topromote export value and modernise agriculture, the expert noted.

He said reform efforts have helped improve theinternational community’s assessment of Vietnam’s business environment.

However, Vietnam still has problems inadministrative reforms, overspending and waste of State funds, high publicdebt, slow restructuring of State-owned enterprises and incomplete e-Governmentbuilding, Doanh added.

Phong pointed to other issues that need moreimprovement, including labour productivity, national competitiveness, products’added value, public investment’s effectiveness, bad debt settlement andpressure on inflation.

He said the challenges in 2019 won’t be small asVietnam will have to face the adverse impacts of the US-China trade war andeconomic integration.

According to Deputy Minister of Planning andInvestment Le Quang Manh, to sustain the growth trend in 2019, it is necessaryto continue improving the investment and business climate, promoting economicgrowth and restructuring the economy. 

The country should also step up innovation andapplication of scientific and technological advances while capitalising on theFourth Industrial Revolution, increasing labour productivity and enhancing theeconomy’s quality, self-reliance and competitiveness, the official said.-VNA