Vietnamese economy to grow by 5.8% in 2002
An annual report on Vietnam's economy by the US Energy Information Administration (EIA) suggests that growth of GDP will be 5.8% in 2002, slower than the projected 6.6% for 2001, but still respectable.
The report suggested that Vietnam's economy weathered the global economic slowdown of 2001 better than most other Asian economies, largely due to the fact that it is less integrated into the world economy and therefore less vulnerable to declines in demand for its exports. Even so, the EIA economic forecast for Vietnam is significantly lower than the 7.0 - 7.3% increase GDP for next year targeted by the Vietnamese government.
Vietnam's economic reforms accelerated in 2001 after many of years of stagnatino during the 1990s, according to the US Energy Department's analytical arm. ''However, high levels of taxation and cumbersome regulatory procedures still present obstacles to foreign investment, and flows of foreign direct investment have not yet returned to the peak attained in 1996, during a period of greater optimism about the pace of the country's reforms,'' EIA said.
A positive development for Vietnam's economy was US Senate approval in October of United States normal trading relations with Vietnam, but it will still be several years before Vietnam will be ready to join the World Trade Organisation, EIA said.
