Vietnam 2011: Inflation
WEF's Global Competitiveness Report
(GCI) for
Vietnam:
Inflation
The World Economic Forum (WEF)'s Global Competitiveness Report (GCI) is an annual report published by the World Economic Forum since 1979. The 2011-2012 report covers 142 major and emerging economies. The Global Competitiveness Index measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity, depending on how productively a country uses available resources. WEF Comments for Vietnam 2011-2012
(Source: www.weforum.org)Our Comments
- Inflation from the 4th problem ranking has became the country's top concern (see our report: the most problematic factors for doing business in Vietnam 2011 compared to 2009). The government has done much right in trying to control inflation but needs to keep strict controls on money growth and restrict poorly conceived project growth. - According to the Vietnam General Statistics Office (GSO), Vietnam's gross domestic product (GDP) rose by 5.89 percent in 2011, lower than 6 percent set by the government and 6.78 percent in the previous year. The country's consumer price index (CPI), which reflects the inflation rate, hit 18.13 percent this year, a slight increase over the set target of 18 percent. According to GSO, if measures to contain inflation and spur production continue to be flexibly implemented, GDP could reach 6- 6.5 percent and CPI could dip to 10 percent for 2012. - In its 2011 Socio-economic Statistics, GSO reported that disbursed social investment is estimated to total 877.9 trillion Vietnamese dong ($41.75 billion), accounting for 34.6 percent of GDP. The figure marks an increase of 5.7 percent over 2010. Industry and construction, which accounted for 40 percent of the economy, grew by 5.53 percent, while agro-forestry-fisheries sector, which accounted for 22 percent of the GDP, increased by 4 percent, in 2011. Insiders said to the Vietnam News that the growth rate achieved is incredible in the context that Vietnamese businesses had to struggle with higher costs to maintain production while apply advanced technologies during the year. More detailed
analysis of the report:
The
Global Competitiveness Index measures the set of institutions,
policies, and factors that set the sustainable current and medium-term
levels of economic prosperity, depending on how productively a country
uses available resources.
Vietnam: Institutions Property rights, Intellectual property protection, Irregular payments and bribes, Favoritism in decisions of government officials, Wastefulness of government spending, Burden of government regulation, Efficiency of legal framework in settling disputes, Transparency of government policymaking, Business costs of terrorism, Business costs of crime and violence, Strength of investor protection Vietnam: Infrastructure & Technological readiness Quality of overall infrastructure (road, port, airport), Quality of electricity supply, Fixed telephone lines/100 pop, Mobile telephone subscriptions, Availability of latest technologies, DI and technology transfer, Internet users, Broadband Internet subscriptions, Internet bandwidth Vietnam: Inflation annual % change Vietnam: Education and Training Quality of primary education, Primary education enrollment, Secondary education enrollment, Quality of the educational system, Quality of math and science education, Quality of management schools, Internet access in schools, Availability of research and training services, Extent of staff training Vietnam: Goods market efficiency Intensity of local competition, Extent of market dominance, Extent and effect of taxation, Total tax rate, No. procedures and days to start a business, Business impact of rules on FDI, Buyer sophistication Vietnam: Labor market efficiency Cooperation in labor-employer relations, Rigidity of employment, Brain drain Vietnam: Market size Domestic market size, Foreign market size Vietnam: Business sophistication & Innovation Local supplier quantity, Local supplier quality, State of cluster development, Extent of marketing. Capacity for innovation, Quality of scientific research institutions, vailability of scientists and engineers |
