Vietnam's economy begins a new recovery cycle

PSNews- At the International Scientific Conference “Vietnam Economy in the Medium Term: Prospect and Influences of environmental factors,” delegates were optimistic when discussing Vietnam’s economic growth trend in the 2016-2020 period.

During the period, according to NCIF, Vietnam's economy will have escaped from the slowdown and begin a new cycle of recovery. Moreover, NCIF also forecasts that economic growth will recover strongly thanks to the FTAs, FDI enterprises and increasing demands of foreign markets.

While economic restructuring, institutional reform and business environment continue, the construction sector will see strong growth, serving as a key driver for economic recovery. The services sector will grow at a moderated rate while the agricultural sector may shrink, due to the impact of climate change and without any breakthrough solutions, leading to an effective agricultural structure; this sector also faces the increasingly strict requirements of quality standards and technical barriers.

Accordingly, NCIF has assumed that the world's economic growth continues to be stableat 3% on average as forecast in July 2016 by the International Monetary Fund, NCIF experts also forecast average economic growth in the period of 2016-2020 may reach 6.55%.

To reach the growth rate according to this scenario, Dr. Dang Duc Anh of NCIF said, this requires a number of domestic inputs, such as: public sector investment to be improved in terms of both disbursement speed and efficiency; effective policy management, favorable legal procedures and the investment; average growth rate of the whole society at 7%.

In particular, the financial system needs to ensurea stable, fiscal policy and flexiblecurrency policy. The FTAs should be implemented effectively to help improve investment in the country and Vietnamese exports.

However, Dr. Dang Duc Anh also warned that climate change and environmental pollution will negatively affect all localities across the country and sectors, especially natural resources and natural and social environment. In particular, water resources, agriculture and rural development, health care and coastal areas will be affected the most. In period 2016-2020, natural disasters and environmental 
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