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A United Nations body predicted on April 18 that Vietnam’s economy would record 8.3% growth rate for 2007.
The UN Economic and Social Commission for Asia and the Pacific (UNESCAP) said in its annual report released in Hanoi, that Vietnam is regaining its momentum thanks primarily to the development of textiles and service sectors such as tourism and banking.
The Vietnamese economy grew by 8.4% in 2005 before slipping slightly to 8.2% in 2006.
The organisation also forecast a heavy increase in foreign direct investment into Vietnam upon the country's entry into the World Trade Organisation (WTO).
The country’s FDI in 2006 surged to a record US $10.2 billion, above the 2005 level of US $6.2 billion and an earlier peak in 1996 of US $9 billion.
UNESCAP said Vietnam’s accession to the WTO, which leads to decreases in import duties, would curb the country’s inflation. In 2006, the Consumer Price Index (CPI) dipped to 7.5% from 8.3% the year earlier.
With the theme “Surging ahead in uncertain times” report, the UN body signalled that the Asia-Pacific region would become a driving force for the world’s economy.
It predicted real economic growth for the 39 developing economies in the Asia-Pacific region will slow to 7.4% this year from 7.9% in the previous year. The organisation, however, noted that the greatest challenges for the whole region for 2007 would be to manage foreign exchange rates and abolish gender inequality.
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