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Source: www.asiaecon.org |

VIETNAM ENCOUNTERS SOME STRUGGLE


Vietnam’s economic performance has dropped a significant GDP percentage from 3.1 percent this past quarter in comparison to 7.4 percent in the first quarter of 2008.


Vietnam’s economic performance has dropped a significant GDP percentage from 3.1 percent this past quarter in comparison to 7.4 percent in the first quarter of 2008. Vietnam, just as other countries in Asia, might have the turn for its worst. This might just be the beginning of the downfall in their economy. Vietnam is very dependent on global economy then it was a decade ago.  Exports played the major source of revenue for the economy, which reported 70 percent of its revenues. But since the European Union, the United States, and Japan are Vietnams key export markets which all have experienced a reduction in growth rates this year 2 to 5 percent, Vietnam exports suffer.  The GDP growth rate for Vietnam in 2009 will be expected to be around or just about.3 percent compared to last year’s 6.2 percent. Vietnam has the desire to recover but not until 2-1- with a growth rate of 2 percent.  Vietnam’s economy supposes that they are experiencing such a crisis is because of the governments actions in cutting the interest rates and lowering the banks’ reserve requirement. The consumers are handling it more positively than other countries have before and are more confident that it is a global economic crisis. Nevertheless, families overseas will continue to help their families in Vietnam no matter what the conditions are. Even with China’s relatively robust economy will not be very helpful to Vietnam because of the small exports to China. Vietnam is in a slight denial about their economic struggles. As reported by a verdict in January, “for Vietnam ‘success is a choice’ but in practice it was ‘no different from a soccer coach who starts his weakest players in the championship match.’”

Source: www.asiaecon.org |


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