BizLIVE - The Vietnamese economy is estimated to grow by an additional 8%-10% at least until 2030 if it taps the access to a huge market once it joins a Pacific Rim trade deal and carries out proper reforms, said Sandeep Mahajan, lead economist of the World Bank in Vietnam.
TPP to help spur Vietnam economy 10%, says World Bank
Lead Economist of the World Bank in Vietnam Sandeep Mahajan speaks at press conference on Oct. 5. (Source: Saigon Times)
Foreign investors will flock to Vietnam and the influx of foreign capital will surge if it can access the U.S. and Japanese markets, the World Bank economist said at a press meeting on Monday.
Among large ASEAN economies, growth conditions will be most buoyant in the Philippines and Vietnam, according to the World Bank’s East Asia and Pacific Economic update.
To achieve economic growth rates higher than 6%, Vietnam needs to overhaul the bad debt-plagued banking system, state-owned enterprises and create a level playing field for businesses, Mr. Mahajan stresses.
Regarding divestment from non-core businesses by state firms, he noted the government should not set a rigid deadline of end-2015 for a plan to withdraw 17 trillion dong (756 million USD) worth of state holdings. In addition, to make the equitization process of state-run companies more meaningful, the government needs to boost information disclosure, offer large holdings and establish a level playing field.