Despite flood impact, Vietnam's growth rate holds steady

[Ulhas Joglekar]

30 December 1999
Despite flood impact, Vietnam's growth rate holds steady
HANOI: Vietnam's economy grew 4.8 percent in 1999, despite the worst
flooding in a century and the continuing impact of the Asian financial
crisis, according to figures released Wednesday by the Government Statistics
Office.
The growth rate falls in line with Hanoi's predictions earlier this year of
4.7 percent to 5 percent growth, although that was reduced from the
government's original projection.
Despite the massive flooding in November and December that killed more than
700 people and caused dlrs 285 million in damage, the government has also
set an ambitious target rate of 5.5 percent to 6 percent growth for the
coming year.
Vietnam's economic growth has slowed in recent years, mostly due to
declining foreign investment, weak domestic investment and slow reforms,
analysts say.
Excessive red tape has driven off investors, and the recent Asian financial
crisis has hurt regional demand for the country's exported goods, they add.
But government officials are optimistic about prospects in 2000, pointing to
a series of new measures they hope will boost growth.
A new enterprise law - which goes into effect Saturday - will liberalize the
investment climate for local private firms and foreign companies alike, and
should help attract fresh cash into the country's economy.
Hanoi has also increased the number of companies allowed to participate in
foreign trade, which it hopes will help raise export growth. Exports have
grown 23.2 percent this year from 1998. (AP)
For reprint rights: Times Syndication Service
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Bennett, Coleman & Co. Ltd. 1999.