return icon

Economic growth improves but private sector still sluggish

VietNamNet Bridge - Reports released by domestic and foreign institutions have all affirmed that Vietnam’s economy is recovering. But no one can explain the worrying decline of domestic private enterprises.
VietNamNet Bridge - Reports released by domestic and foreign institutions have all affirmed that Vietnam’s economy is recovering. But no one can explain the worrying decline of domestic private enterprises.


The gross domestic product (GDP) in the first nine months of 2015 grew by 6.5 percent compared with the same period last year, according to the General Statistics Office (GSO). The figure, as commented by economists, is ‘good news’.

Both the Asian Development Bank (ADB) and the World Bank (WB) have said they believe Vietnam’s economic growth in 2015 and 2016 would be beyond expectations.

In a report to the September government meeting, the National Finance Supervision Council also said the economic growth would rally amid changes in the global economy.

To prove the conclusion, the council cited statistics which said the number of businesses newly set up in the first nine months of 2015 increased by 28.5 percent, while the registered investment capital increased by 31.4 percent compared with the period last year.

The council’s report pointed out that the good production activities had helped offset the decrease in the state budget revenue due to the crude oil price fall. By September 15, the revenue from domestic sources had increased by 17.5 percent compared with last year.

According to GSO, 68,347 businesses were set up in the first nine months of the year, while 47,604 businesses suspended their operations.

Meanwhile, in a report to the National Assembly’s Standing Committee, the Ministry of Planning and Investment’s Business Registration Agency showed that 54,566 businesses stopped operations and dissolved, equal to both 2011 and 2012 in total.

As such, more and more private businesses have gone dissolved and bankrupt, which shows the business environment is still tough for them. The high number of businesses which were dissolved contrasts with statistics showing the impressive recovery of the national economy.

The National Finance Supervision Council, while affirming that the national economy has maintained steady recovery, also admitted that businesses, especially small and medium ones, are still meeting difficulties.

The majority of the businesses which had to stop operation in the first half of 2015 were ones with registered capital of less than VND10 billion.

In the draft report reviewing the implementation of the National Assembly’s Resolution on the 2011-2015 socio-economic development, the National Assembly’s Economics Committee pointed out that 60,000 businesses stopped operation in 2013, 67,800 businesses in 2014 and 54,566 businesses in the first nine months of 2015. 

The domestic economic sector has a trade deficit. In 2011-2014, the excess of imports over exports totaled $56.3 billion, while it was $15.8 billion in the first nine months of 2015.



10-year-old translator brings scientific knowledge closer to young readers

Children’s history book series, Unstoppable Us, by best-selling author Yuval Noah Harari, has been translated from English into Vietnamese by a 10-year-old translator and published by Omega Plus.

Floods kill five in central region

Heavy downpours and floods in the central region in the past few days claimed the lives of five people as of 5pm on December 6.


Vietnam spends nearly 190 million USD on importing pork in ten months

Vinfast faces challenges in North America

North America is a promising market, but it is not easy to be successful because there are many rivals there.

Festivities celebrate holiday season in HCM City

HCM City is preparing to launch a series of festivities to celebrate the New Year and Tet holidays (Lunar New Year).

Young driver offers thousands of free rides for poor patients

Dang Xuan Hieu, 24, has for four years given free trips to thousands of poor patients in Ha Giang Province.

Policies take effect in December 2022

Below are among new policies on import and export nomenclature, electricity generation price bracket, and licenses to manufacture tobacco products taking effect from December.

Finance Ministry to raise taxes on land and housing

Taxes on land and housing in Vietnam are far lower than those in other countries, exposing the need for higher tax rates to improve fiscal revenues.

Vietnam, RoK enter new chapter of cooperation

Vietnam and the Republic of Korea have entered a new chapter in their relationship as they upgraded to a comprehensive strategic partnership during President Nguyen Xuan Phuc's official visit to the country.

Free piano class for the elderly in HCM City

A piano class has been run free-of-charge for elderly people in Ho Chi Minh City for the past five years.

Business safety in the digital age

Vietnamese businesses are facing challenges related to cyber security and difficulties adapting to digital transformation.

Tax refunds worth trillions of VND

Tax bodies are working on problems related to VAT refunds in order to help businesses get money to invest in operations, following a dialogue held last week.

Legal loopholes exist for trading forbidden goods

Many students believe that e-cigarettes are not toxic, but are fragrant and stylish.

Quang Ninh to develop night-time economy, awaken tourism

On July 27, 2010, the Prime Minister signed a decision approving Vietnam’s night-time economy development plan.