The General Statistics Office of Vietnam (GSO) reported on December 23 that GDP increased gradually on a quarterly basis, from 4.76% in Q1 to 5% in Q2, 5.45% in Q3 and 6.04% in Q4.

Of the entire economic growth, the agro-forestry and fisheries sector rose by 2.67% (nearly equal to last year’s growth and contributing 0.48%), the industry and construction up 5.43% (lower than last year’s 5.75% level and contributing 2.09%) and services up 6.56% (higher than last year’s 5.9% and contributing 2.85%).

GSO General Director Nguyen Bich Lam emphasised that despite improvements, the quality of growth is not high and stable. Capital and labour remain the two major GDP drivers, making up 55.79% and 17.12% in 2013 respectively, compared to 68.79% and 23.11% in 2010, 55.53% and 26.18% in 2011, and 59.16% and 30.86% in 2012.

Lam forecast Vietnam is likely to achieve a GDP growth rate of 5.8% and keep inflation at 7% in 2014. To achieve its targets, the country needs to accelerate the restructuring of the banking system by better dealing with non-performing loans, setting up provisions, and re-organising inefficient banks.

More efforts are needed to reform public investments, offer incentives to private businesses, and gradually put in place price adjustment plans for essential commodities as scheduled to avoid market shocks and ease burden on inflation.

In addition, preferential policies related to tax and interest rates should be devised to support businesses and encourage them to use domestic materials, helping to promote economic growth.